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{\*\bkmkstart filing_1}{\*\bkmkend filing_1}{\*\bkmkstart doc_1_1}{\*\bkmkend doc_1_1}\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\brdrb\brdrs\cf1\f51\fs2\ql \~\par\pard\plain\cf1\f51\fs14\qc \~\par\pard\plain\cf1\f51\fs34\b\qc UNITED STATES\par\pard\plain\cf1\f51\fs34\b\qc SECURITIES AND EXCHANGE COMMISSION\par\pard\plain\cf1\f51\fs18\b\qc Washington, D.C. 20549\par\pard\plain\cf1\f51\fs14\qc \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\cf1\f51\fs14\qc \~\par\pard\plain\cf1\f51\fs34\b\qc FORM\~10-Q\par\pard\plain\cf1\f51\fs14\qc \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\cf1\f51\fs14\qc \~\par\pard\plain\li792\fi-396\cf1\f51\fs22\b\ql \u9746?\plain\li792\cf1\f51\fs18\b\ql QUARTERLY REPORT PURSUANT TO SECTION\~13 OR 15(d)\~OF THE SECURITIES EXCHANGE ACT OF\plain\li792\cf1\f51\fs18\b\ql 1934\par\pard\plain\li792\fi-396\cf1\f51\fs14\ql \~\par\pard\plain\sa132\cf1\f51\fs18\b\qc For the Quarterly Period Ended March 31,\~2019\par\pard\plain\sa132\cf1\f51\fs18\b\qc OR\par\pard\plain\li792\fi-396\cf1\f51\fs22\b\ql \u9744?\plain\li792\cf1\f51\fs18\b\ql TRANSITION REPORT PURSUANT TO SECTION\~13 OR 15(d)\~OF THE SECURITIES EXCHANGE ACT OF\plain\li792\sa132\cf1\f51\fs18\b\ql 1934\par\pard\plain\sa132\cf1\f51\fs18\b\qc For the transition period from \~\~\~\~\~\~\~\~\~\~\~\~ to\~\~\~\~\~\~\~\~\~\~\~\~\par\pard\plain\sa132\cf1\f51\fs18\b\qc Commission File Number 001-33389\par\pard\plain\cf1\f51\fs34\b\qc VIVUS,\~INC.\par\pard\plain\cf1\f51\fs18\qc (Exact name of registrant as specified in its charter)\par\pard\plain\cf1\f51\fs14\qc \~
\par\pard\plain
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\pard\plain\intbl\cf1\f51\fs18\b\qc Delaware\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\b\qc 94-3136179\cell{
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\pard\plain\intbl\cf1\f51\fs18\qc (State or other jurisdiction of\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\qc (IRS employer\cell{
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\pard\plain\intbl\cf1\f51\fs18\qc incorporation or organization)\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\qc identification number)\cell{
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\pard\plain\intbl\cf1\f51\fs18\b\qc 900 E. Hamilton Avenue, Suite 550\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\qc \~\cell{
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\pard\plain\intbl\cf1\f51\fs18\b\qc Campbell, California\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\b\qc 95008\cell{
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\pard\plain\intbl\cf1\f51\fs18\qc (Address of principal executive office)\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\qc (Zip Code)\cell{
{\trowd\trqc\cellx4980\clvertalb\cellx5183\cellx10164\trrh223\row}}}\pard\plain\cf1\f51\fs12\ql \~\par\pard\plain\cf1\f51\fs18\b\qc (650) 934-5200\par\pard\plain\sa132\cf1\f51\fs18\qc (Registrant\u8217?s telephone number, including area code)\par\pard\plain\cf1\f51\fs18\b\qc N/A\par\pard\plain\sa132\cf1\f51\fs18\qc (Former name, former address and former fiscal year, if changed since last report)\par\pard\plain\fi396\cf1\f51\fs18\ql Indicate by check mark whether the registrant (1)\~has filed all reports required to be filed by Section\~13 or 15(d)\~of the Securities\plain\cf1\f51\fs18\ql Exchange Act of 1934 during the preceding 12 months (or for such shorter period that the registrant was required to file such reports),\plain\sa132\cf1\f51\fs18\ql and (2)\~has been subject to such filing requirements for the past 90 days.\~\~Yes\~\u9746? \~No\~\u9744?\par\pard\plain\fi396\cf1\f51\fs18\ql Indicate by check mark whether the registrant has submitted electronically every Interactive Data File required to be submitted\plain\cf1\f51\fs18\ql pursuant to Rule\~405 of Regulation S-T (\u167?232.405 of this chapter) during the preceding 12 months (or for such shorter period\plain\sa132\cf1\f51\fs18\ql that the registrant was required to submit such files).\~\~Yes\~\u9746? \~No\~\u9744?\par\pard\plain\fi396\cf1\f51\fs18\ql Indicate by check mark whether the registrant is a large accelerated filer, an accelerated filer, a non-accelerated filer, a smaller\plain\cf1\f51\fs18\ql reporting company or an emerging growth company. See the definitions of \u8220?large accelerated filer,\u8221? \u8220?accelerated\plain\cf1\f51\fs18\ql filer,\u8221? \u8220?smaller reporting company\u8221? and \u8220?emerging growth company\u8221? in Rule\~12b-2 of the Exchange\plain\sa132\cf1\f51\fs18\ql Act.
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\pard\plain\intbl\cf1\f51\fs10\qc \~\cell\pard\plain\intbl\cf1\f51\fs10\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\qc \~\cell\pard\plain\intbl\cf1\f51\fs18\qc Emerging growth\plain\intbl\cf1\f51\fs18\qc company\~\u9744?\cell{
{\trowd\cellx2566\cellx5132\cellx7698\cellx10164\trrh446\row}}}\pard\plain\cf1\f51\fs12\ql \~\par\pard\plain\fi396\cf1\f51\fs18\ql If an emerging growth company, indicate by check mark if the registrant has elected not to use the extended transition period for\plain\sa132\cf1\f51\fs18\ql complying with any new or revised financial accounting standards provided pursuant to Section 13(a) of the Exchange Act. \u9744?\par\pard\plain\sa132\fi396\cf1\f51\fs18\ql Indicate by check mark whether the registrant is a shell company (as defined in Rule\~12b-2 of the Act).\~ \u9744?\~Yes\~ \u9746?\~No\par\pard\plain\fi396\cf1\f51\fs18\ql At April 22, 2019, 10,637,164 shares of common stock, par value $.001 per share, were outstanding.\par\pard\plain\fi396\cf1\f51\fs10\ql \~\par\pard\plain\brdrb\brdrs\cf1\f51\fs2\ql \~\par\pard\plain\cf1\f51\fs24\qc \~\par\pard\plain\cf1\f51\fs24\qc \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li110\ri110\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc VIVUS,\~INC.\par\pard\plain\cf1\f51\fs20\qc \~{\*\bkmkstart toc_12866592}{\*\bkmkend toc_12866592}\par\pard\plain\cf1\f51\fs20\b\qc Quarterly\~Report\~on\~Form 10-Q\~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\b\qc INDEX\par\pard\plain\cf1\f51\fs20\qc \~
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\pard\plain\intbl\li154\ul{\field{\*\fldinst HYPERLINK \\l "item3_quantitativeandqualitative" }{\*\fldrslt\cf3\f51\fs20\ql Item 3}}\plain\intbl\li154\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sa66\ul{\field{\*\fldinst HYPERLINK \\l "item3_quantitativeandqualitative" }{\*\fldrslt\cf3\f51\fs20\ql Quantitative\~and\~Qualitative\~Disclosures\~about\~Market\~Risk}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 32\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495
\pard\plain\intbl\li154\ul{\field{\*\fldinst HYPERLINK \\l "item4_controlsandprocedures_1638" }{\*\fldrslt\cf3\f51\fs20\ql Item 4}}\plain\intbl\li154\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "item4_controlsandprocedures_1638" }{\*\fldrslt\cf3\f51\fs20\ql Controls\~and Procedures}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 32\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh248\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "partiiotherinformation_991251_12" }{\*\fldrslt\cf3\f51\fs20\ql PART II \~\u8212?\~OTHER INFORMATION}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 34\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh248\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh248\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495
\pard\plain\intbl\li154\ul{\field{\*\fldinst HYPERLINK \\l "item1_legalproceedings_163824_12" }{\*\fldrslt\cf3\f51\fs20\ql Item 1}}\plain\intbl\li154\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sa66\ul{\field{\*\fldinst HYPERLINK \\l "item1_legalproceedings_163824_12" }{\*\fldrslt\cf3\f51\fs20\ql Legal\~Proceedings}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 34\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495
\pard\plain\intbl\li154\ul{\field{\*\fldinst HYPERLINK \\l "item1a_riskfactors_163906_128665" }{\*\fldrslt\cf3\f51\fs20\ql Item 1A}}\plain\intbl\li154\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sa66\ul{\field{\*\fldinst HYPERLINK \\l "item1a_riskfactors_163906_128665" }{\*\fldrslt\cf3\f51\fs20\ql Risk\~Factors}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 34\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495
\pard\plain\intbl\li154\ul{\field{\*\fldinst HYPERLINK \\l "item2_unregisteredsalesofequitys" }{\*\fldrslt\cf3\f51\fs20\ql Item 2}}\plain\intbl\li154\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sa66\ul{\field{\*\fldinst HYPERLINK \\l "item2_unregisteredsalesofequitys" }{\*\fldrslt\cf3\f51\fs20\ql Unregistered\~Sales of\~Equity\~Securities\~and\~Use\~of\~Proceeds}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 69\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495
\pard\plain\intbl\li154\ul{\field{\*\fldinst HYPERLINK \\l "item3_defaultsuponseniorsecuriti" }{\*\fldrslt\cf3\f51\fs20\ql Item 3}}\plain\intbl\li154\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sa66\ul{\field{\*\fldinst HYPERLINK \\l "item3_defaultsuponseniorsecuriti" }{\*\fldrslt\cf3\f51\fs20\ql Defaults\~Upon\~Senior Securities}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 69\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495
\pard\plain\intbl\li154\ul{\field{\*\fldinst HYPERLINK \\l "item4_minesafetydisclosures_1709" }{\*\fldrslt\cf3\f51\fs20\ql Item 4}}\plain\intbl\li154\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sa66\ul{\field{\*\fldinst HYPERLINK \\l "item4_minesafetydisclosures_1709" }{\*\fldrslt\cf3\f51\fs20\ql Mine\~Safety Disclosures}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 69\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495
\pard\plain\intbl\li154\ul{\field{\*\fldinst HYPERLINK \\l "item5_otherinformation_170959_12" }{\*\fldrslt\cf3\f51\fs20\ql Item 5}}\plain\intbl\li154\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sa66\ul{\field{\*\fldinst HYPERLINK \\l "item5_otherinformation_170959_12" }{\*\fldrslt\cf3\f51\fs20\ql Other Information}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 69\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495
\pard\plain\intbl\li154\ul{\field{\*\fldinst HYPERLINK \\l "item6_exhibits_171002_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Item 6}}\plain\intbl\li154\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\sa66\ul{\field{\*\fldinst HYPERLINK \\l "item6_exhibits_171002_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Exhibits}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 69\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh495\row}}}
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK \\l "signatures_171045_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Signatures}}\cell\pard\plain\intbl\cf1\f51\fs20\qr 72\cell{
{\trowd\trqc\clshdng100\clcfpat7\clcbpat7\cellx1029\clshdng100\clcfpat7\clcbpat7\cellx8909\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh248\row}}}\pard\plain\cf1\f51\fs2\ql \~\par\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\cf1\f51\fs20\qc 2\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}{\*\bkmkstart part_1_2_1}{\*\bkmkend part_1_2_1}\par\pard\plain\cf1\f51\fs20\b\ql PART\~I: FINANCIA{\*\bkmkstart partifinancial_108379_12866592}{\*\bkmkend partifinancial_108379_12866592}\plain\cf1\f51\fs20\b\ql L INFORMATION\par\pard\plain\cf1\f51\fs20\qc \~{\*\bkmkstart item_1_3_1}{\*\bkmkend item_1_3_1}\par\pard\plain\cf1\f51\fs20\b\ql ITEM 1. CONDENSED CONSOLIDATED FINANCIAL STATEMENTS (UNAUDITED){\*\bkmkstart item1condensedconsolidatedfinanc}{\*\bkmkend item1condensedconsolidatedfinanc}\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\b\qc VIVUS,\~INC.\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\b\qc CONDENSED CONSOLIDATED BALANCE SHEET{\*\bkmkstart condensedconsolidatedbalanceshee}{\*\bkmkend condensedconsolidatedbalanceshee}\plain\cf1\f51\fs20\b\qc S\par\pard\plain\cf1\f51\fs20\b\qc (In thousands, except par value\plain\cf1\f51\fs20\qc )\par\pard\plain\cf1\f51\fs20\qc \~
\par\pard\plain
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh66\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6640\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7989\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8129\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31,\~\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6640\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7989\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8129\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7989\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7989\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\qc ASSETS\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Unaudited\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Current assets:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Cash and cash equivalents\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 23,021\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 30,411\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Available-for-sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 81,632\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 80,838\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Accounts receivable, net\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 24,554\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 25,608\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Inventories\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 21,946\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 23,132\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Prepaid expenses and other current assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 6,568\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 7,538\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Total current assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 157,721\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 167,527\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Fixed assets, net\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 325\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 341\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Right-of-use assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,496\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Intangible and other non-current assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 130,641\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 134,279\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7051\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7989\clvertalb\cellx8129\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8655\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Total assets\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 290,183\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 302,147\cell{
{\trowd\clvertalb\cellx6640\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7051\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7989\clvertalb\cellx8129\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8655\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\qc LIABILITIES AND STOCKHOLDERS\u8217? DEFICIT\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Current liabilities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Accounts payable\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,615\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 8,921\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Accrued and other liabilities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 33,391\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 33,044\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Deferred revenue\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,255\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,235\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7989\clvertalb\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Current portion of lease liability\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 705\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell{
{\trowd\clvertalb\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7989\clvertalb\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh264
\pard\plain\intbl\li396\cf1\f51\fs20\ql Total current liabilities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 38,966\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 43,200\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh264\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Long-term debt\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 293,396\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 294,446\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Deferred revenue, net of current portion\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,975\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 4,290\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Lease liability, net of current portion\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,091\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Non-current accrued and other liabilities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 234\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7989\clvertalb\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Total liabilities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 337,428\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 342,170\cell{
{\trowd\clvertalb\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7989\clvertalb\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Commitments and contingencies\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Stockholders\u8217? deficit:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh495
\pard\plain\intbl\li264\cf1\f51\fs20\ql Preferred stock; $.001 par value; 5,000 shares authorized; no shares issued\plain\intbl\li264\cf1\f51\fs20\ql and outstanding\~at\~March 31, 2019 and December 31, 2018\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh495\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh742
\pard\plain\intbl\li264\cf1\f51\fs20\ql Common stock; $.001 par value; 200,000 shares authorized;\~10,637 and\plain\intbl\li264\cf1\f51\fs20\ql 10,636 shares issued and outstanding at March 31, 2019 and December 31,\plain\intbl\li264\cf1\f51\fs20\ql 2018,\~respectively\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 11\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 11\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh742\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Additional paid-in capital\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 841,219\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 840,751\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Accumulated other comprehensive loss\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (21)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (270)\cell{
{\trowd\clvertalb\cellx6640\clvertalb\cellx7051\clvertalb\cellx7989\clvertalb\cellx8129\clvertalb\cellx8655\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Accumulated deficit\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (888,454)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (880,515)\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7989\clvertalb\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Total stockholders\u8217? deficit\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (47,245)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (40,023)\cell{
{\trowd\clvertalb\cellx6640\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7051\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7989\clvertalb\cellx8129\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Total liabilities and stockholders\u8217? deficit\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 290,183\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 302,147\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6640\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7051\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7989\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8129\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc See accompanying notes to unaudited condensed consolidated financial statements.\par\pard\plain\cf1\f51\fs20\qc 3\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc VIVUS,\~INC.\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\b\qc CONDENSED CONSOLIDATED STATEMENTS OF OPERATIONS{\*\bkmkstart condensedconsolidatedstatementso}{\*\bkmkend condensedconsolidatedstatementso}\par\pard\plain\cf1\f51\fs20\b\qc (In thousands, except per share data)\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited)\par\pard\plain\cf1\f51\fs20\qc \~
\par\pard\plain
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6473\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6473\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7819\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9527\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f62\fs16\qc \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7819\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9527\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Revenue:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Net product revenue\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 13,497\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 9,632\cell{
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Supply revenue\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,604\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,683\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6686\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7819\clvertalb\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8362\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Royalty revenue\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,045\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 585\cell{
{\trowd\trqc\clvertalb\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6686\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7819\clvertalb\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8362\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Total revenue\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 16,146\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 11,900\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell{
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Operating expenses:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Cost of goods sold (excluding amortization)\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 4,308\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 2,630\cell{
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Amortization of intangible assets\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,638\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 91\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Sales and marketing\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 4,534\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 4,279\cell{
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql General and administrative\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 5,284\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 5,789\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6686\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7819\clvertalb\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8362\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Research and development\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 2,469\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,403\cell{
{\trowd\trqc\clvertalb\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6686\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7819\clvertalb\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8362\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh264
\pard\plain\intbl\li396\cf1\f51\fs20\ql Total operating expenses\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 20,233\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 14,192\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh264\row}}}
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell{
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Loss from operations\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (4,087)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (2,292)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Interest expense and other expense, net\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,870\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 8,349\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Loss before income taxes\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (7,957)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (10,641)\cell{
{\trowd\trqc\clvertalb\cellx6473\clvertalb\cellx6686\clvertalb\cellx7819\clvertalb\cellx8122\clvertalb\cellx8362\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql (Benefit) provision for income taxes\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (8)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 12\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6686\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7819\clvertalb\cellx8122\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8362\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Net loss\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (7,949)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (10,653)\cell{
{\trowd\trqc\clvertalb\cellx6473\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6686\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7819\clvertalb\cellx8122\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8362\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6686\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7819\clvertalb\cellx8122\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8362\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Basic and diluted net loss per share:\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (0.75)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (1.00)\cell{
{\trowd\trqc\clvertalb\cellx6473\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6686\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7819\clvertalb\cellx8122\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8362\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Shares used in per share computation:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6686\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7819\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8122\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8362\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6473\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6686\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7819\clvertalb\cellx8122\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8362\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Basic and diluted\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10,637\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10,601\cell{
{\trowd\trqc\clvertalb\cellx6473\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6686\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7819\clvertalb\cellx8122\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8362\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248\row}}}\pard\plain\cf1\f51\fs2\ql \~\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\b\qc \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\b\qc CONDENSED CONSOLIDATED STATEMENTS OF COMPREHENSIVE LOSS{\*\bkmkstart comprehensiveloss_517788_1286659}{\*\bkmkend comprehensiveloss_517788_1286659}\par\pard\plain\cf1\f51\fs20\b\qc (In thousands)\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited)\par\pard\plain\cf1\f51\fs20\qc \~
\par\pard\plain
{\trowd\trqc\clvertalb\cellx6469\clvertalb\cellx6682\clvertalb\cellx7714\clvertalb\cellx8095\clvertalb\cellx8308\clvertalb\cellx9346\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx6469\clvertalb\cellx6682\clvertalb\cellx7714\clvertalb\cellx8095\clvertalb\cellx8308\clvertalb\cellx9346\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6469\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9345\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6469\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9345\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6469\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9345\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6469\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9345\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6469\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7714\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8095\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9343\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6469\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7714\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8095\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9343\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6469\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6682\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7714\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8308\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9346\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Net loss\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (7,949)\cell\pard\plain\intbl\cf1\f62\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (10,653)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6469\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6682\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7714\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8308\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9346\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6469\clvertalb\cellx6682\clvertalb\cellx7714\clvertalb\cellx8095\clvertalb\cellx8308\clvertalb\cellx9346\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Unrealized gain (loss) on securities, net of taxes\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 249\cell\pard\plain\intbl\cf1\f62\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (477)\cell{
{\trowd\trqc\clvertalb\cellx6469\clvertalb\cellx6682\clvertalb\cellx7714\clvertalb\cellx8095\clvertalb\cellx8308\clvertalb\cellx9346\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6469\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6682\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7714\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8095\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8308\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9346\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Translation adjustment\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (1)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6469\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6682\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7714\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8095\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8308\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9346\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6469\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6682\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7714\clvertalb\cellx8095\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8308\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9346\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Comprehensive loss\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (7,701)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (11,130)\cell{
{\trowd\trqc\clvertalb\cellx6469\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6682\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7714\clvertalb\cellx8095\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8308\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9346\trrh248\row}}}\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs2\ql \~\par\pard\plain\cf1\f51\fs20\qc See accompanying notes to unaudited condensed consolidated financial statements.\par\pard\plain\cf1\f51\fs20\qc 4\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc VIVUS,\~INC.\par\pard\plain\sb132\cf1\f51\fs20\b\qc CONDENSED CONSOLIDATED STATEMENTS OF STOCKHOLDERS\u8217? DEFICIT{\*\bkmkstart condensedconsolidatedstatementso}{\*\bkmkend condensedconsolidatedstatementso}\par\pard\plain\cf1\f51\fs20\b\qc (In thousands)\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited)\par\pard\plain\cf1\f51\fs20\qc \~
\par\pard\plain
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh66\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1825\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2609\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2892\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3212\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3996\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4145\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4549\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5333\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5482\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6853\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7002\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7495\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8368\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8517\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8739\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Accumulated\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1825\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2609\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2892\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3212\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3996\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4145\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4549\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5333\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5482\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6853\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7002\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7495\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8368\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8517\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8739\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1825\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2609\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2892\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3212\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3996\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4145\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5333\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5482\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6853\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7002\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7495\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8368\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8517\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8739\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Additional\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Other\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1825\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2609\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2892\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3212\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3996\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4145\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5333\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5482\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6853\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7002\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7495\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8368\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8517\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8739\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1825\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3997\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4146\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5334\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5483\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6854\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7003\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8369\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8518\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8740\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Common\~Stock\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Paid-In\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Comprehensive\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Accumulated\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1825\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3997\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4146\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5334\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5483\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6854\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7003\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8369\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8518\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8740\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1825\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2609\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2892\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3996\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4145\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5333\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5482\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6853\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7002\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8368\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8517\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9523\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Shares\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Amount\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Capital\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Loss\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Deficit\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Total\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1825\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2609\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2892\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3996\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4145\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5333\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5482\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6853\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7002\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8368\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8517\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9523\trrh198\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh495
\pard\plain\intbl\cf1\f51\fs20\ql Balances, January\~1,\plain\intbl\cf1\f51\fs20\ql 2018\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10,603\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 11\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 834,824\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (608)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (843,565)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (9,338)\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh495\row}}}
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh742
\pard\plain\intbl\li264\cf1\f51\fs20\ql Vesting of\plain\intbl\li264\cf1\f51\fs20\ql restricted stock\plain\intbl\li264\cf1\f51\fs20\ql units\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 7\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell{
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh742\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh742
\pard\plain\intbl\li264\cf1\f51\fs20\ql Share-based\plain\intbl\li264\cf1\f51\fs20\ql compensation\plain\intbl\li264\cf1\f51\fs20\ql expense\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 925\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 925\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh742\row}}}
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh495
\pard\plain\intbl\li264\cf1\f51\fs20\ql Net unrealized\plain\intbl\li264\cf1\f51\fs20\ql loss on securities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (477)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (477)\cell{
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh495\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Net income\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (10,653)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (10,653)\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx1825\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2609\clvertalb\cellx2892\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3212\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3996\clvertalb\cellx4145\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4549\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5333\clvertalb\cellx5482\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6055\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6853\clvertalb\cellx7002\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7495\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8368\clvertalb\cellx8517\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8739\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh495
\pard\plain\intbl\cf1\f51\fs20\ql Balances, March\~31,\plain\intbl\cf1\f51\fs20\ql 2018\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10,610\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 11\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 835,749\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (1,085)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (854,218)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (19,543)\cell{
{\trowd\clvertalb\cellx1825\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2609\clvertalb\cellx2892\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3212\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3996\clvertalb\cellx4145\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4549\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5333\clvertalb\cellx5482\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6055\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6853\clvertalb\cellx7002\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7495\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8368\clvertalb\cellx8517\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8739\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh495\row}}}
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh495
\pard\plain\intbl\cf1\f51\fs20\ql Balances, January 1,\plain\intbl\cf1\f51\fs20\ql 2019\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10,636\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 11\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 840,751\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (270)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (880,515)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (40,023)\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh495\row}}}
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh742
\pard\plain\intbl\li264\cf1\f51\fs20\ql Vesting of\plain\intbl\li264\cf1\f51\fs20\ql restricted stock\plain\intbl\li264\cf1\f51\fs20\ql units\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~1\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell{
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh742\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh742
\pard\plain\intbl\li264\cf1\f51\fs20\ql Share-based\plain\intbl\li264\cf1\f51\fs20\ql compensation\plain\intbl\li264\cf1\f51\fs20\ql expense\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 468\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 468\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh742\row}}}
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh495
\pard\plain\intbl\li264\cf1\f51\fs20\ql Net unrealized\plain\intbl\li264\cf1\f51\fs20\ql gain on securities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 249\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 249\cell{
{\trowd\clvertalb\cellx1825\clvertalb\cellx2609\clvertalb\cellx2892\clvertalb\cellx3212\clvertalb\cellx3996\clvertalb\cellx4145\clvertalb\cellx4549\clvertalb\cellx5333\clvertalb\cellx5482\clvertalb\cellx6055\clvertalb\cellx6853\clvertalb\cellx7002\clvertalb\cellx7495\clvertalb\cellx8368\clvertalb\cellx8517\clvertalb\cellx8739\clvertalb\cellx9529\trrh495\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh742
\pard\plain\intbl\li264\cf1\f51\fs20\ql Cumulative effect\plain\intbl\li264\cf1\f51\fs20\ql of accounting\plain\intbl\li264\cf1\f51\fs20\ql change\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh742\row}}}
{\trowd\clvertalb\cellx1825\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2609\clvertalb\cellx2892\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3212\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3996\clvertalb\cellx4145\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4549\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5333\clvertalb\cellx5482\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6055\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6853\clvertalb\cellx7002\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7495\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8368\clvertalb\cellx8517\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8739\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Net loss\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (7,949)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (7,949)\cell{
{\trowd\clvertalb\cellx1825\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2609\clvertalb\cellx2892\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3212\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3996\clvertalb\cellx4145\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4549\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5333\clvertalb\cellx5482\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6055\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6853\clvertalb\cellx7002\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7495\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8368\clvertalb\cellx8517\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8739\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh495
\pard\plain\intbl\cf1\f51\fs20\ql Balances, March\~31,\plain\intbl\cf1\f51\fs20\ql 2019\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10,637\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 11\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 841,219\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (21)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (888,454)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (47,245)\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1825\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2609\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2892\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3212\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3996\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4145\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4549\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5333\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5482\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6055\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6853\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7002\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7495\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8368\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8517\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8739\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh495\row}}}\pard\plain\cf1\f51\fs2\qc \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc See accompanying notes to unaudited condensed consolidated financial statements.\par\pard\plain\cf1\f51\fs20\qc 5\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\b\qc VIVUS,\~INC.\par\pard\plain\sb132\cf1\f51\fs20\b\qc CONDENSED CONSOLIDATED STATEMENTS OF CASH FLOWS{\*\bkmkstart cashflows_473578_12866592}{\*\bkmkend cashflows_473578_12866592}\par\pard\plain\cf1\f51\fs20\b\qc (In thousands)\par\pard\plain\cf1\f51\fs20\b\qc (Unaudited)\par\pard\plain\cf1\f51\fs20\qc \~
\par\pard\plain
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7045\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7045\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8186\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9527\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8186\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9527\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\b\ql Operating activities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Net loss\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (7,949)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (10,653)\cell{
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Adjustments to reconcile net loss to net cash used for operating\~activities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Depreciation and amortization\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,675\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 157\cell{
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Amortization of debt issuance costs and discounts\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (1,050)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 5,414\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Amortization of discount or premium on available-for-sale securities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (116)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 121\cell{
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248\row}}}
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\pard\plain\intbl\li396\cf1\f51\fs20\ql Share-based compensation expense\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 468\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 925\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Changes in assets and liabilities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
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{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Accounts receivable\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,054\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 896\cell{
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{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Inventories\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,186\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (3,294)\cell{
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Prepaid expenses and other assets\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,004\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 730\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Accounts payable\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (5,306)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (5,286)\cell{
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Accrued and other liabilities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 389\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (707)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7245\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8186\clvertalb\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8676\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Deferred revenue\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (295)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (291)\cell{
{\trowd\trqc\clvertalb\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7245\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8186\clvertalb\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8676\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Net cash used for operating activities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (6,940)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (11,988)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh382
\pard\plain\intbl\sb132\cf1\f51\fs20\b\ql Investing activities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh382\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Fixed asset purchases\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (21)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (34)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Purchases of available-for-sale securities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (13,876)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (7,604)\cell{
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Proceeds from maturity of available-for-sale securities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 12,885\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 28,336\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7245\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8186\clvertalb\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8676\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Proceeds from sales of available-for-sale securities\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 562\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 6,293\cell{
{\trowd\trqc\clvertalb\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7245\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8186\clvertalb\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8676\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh264
\pard\plain\intbl\li396\cf1\f51\fs20\ql Net cash (used for) provided by investing activities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (450)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 26,991\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh264\row}}}
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh382
\pard\plain\intbl\sb132\cf1\f51\fs20\b\ql Financing activities:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh382\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Repayments of notes payable\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (4,590)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
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\pard\plain\intbl\li396\cf1\f51\fs20\ql Net cash used for financing activities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (4,590)\cell{
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\pard\plain\intbl\sb132\cf1\f51\fs20\b\ql Net (decrease) increase in cash and cash equivalents\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (7,390)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10,413\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh382\row}}}
{\trowd\trqc\clvertalb\cellx7045\clvertalb\cellx7245\clvertalb\cellx8186\clvertalb\cellx8476\clvertalb\cellx8676\clvertalb\cellx9529\trrh382
\pard\plain\intbl\sb132\cf1\f51\fs20\b\ql Cash and cash equivalents:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
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\pard\plain\intbl\li264\cf1\f51\fs20\ql Beginning of year\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 30,411\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 66,392\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7045\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7245\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8186\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8676\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
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\pard\plain\intbl\li264\cf1\f51\fs20\ql End of period\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 23,021\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 76,805\cell{
{\trowd\trqc\clvertalb\cellx7045\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7245\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8186\clvertalb\cellx8476\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8676\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248\row}}}\pard\plain\sb132\cf1\f51\fs20\qc See accompanying notes to unaudited condensed consolidated financial statements.\par\pard\plain\cf1\f51\fs20\qc 6\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sa132\cf1\f51\fs20\b\qc VIVUS,\~INC.\par\pard\plain\cf1\f51\fs22\b\qc NOTES TO UNAUDITED CONDENSED CONSOLIDATED FINANCIAL STATEMENTS{\*\bkmkstart notestounauditedcondensedconsoli}{\*\bkmkend notestounauditedcondensedconsoli}\par\pard\plain\cf1\f51\fs20\b\qc MARCH 31, 2019\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\sa132\cf1\f51\fs22\b\ql 1. BUSINESS AND SIGNIFICANT ACCOUNTING POLICIES\par\pard\plain\fi792\cf1\f51\fs20\ql VIVUS is a specialty pharmaceutical company with three approved therapies (Qsymia\u174?,\plain\cf1\f51\fs20\ql PANCREAZE\u174? and STENDRA\u174?/SPEDRA\u8482?) and one product candidate in active clinical\plain\cf1\f51\fs20\ql development (VI-0106). Qsymia (phentermine and topiramate extended release) is approved by the U.S. Food and\plain\cf1\f51\fs20\ql Drug Administration (\u8220?FDA\u8221?) for chronic weight management. In June 2018, the Company acquired\plain\cf1\f51\fs20\ql the U.S. and Canadian commercial rights for PANCREAZE (pancrelipase), which is indicated for the treatment of\plain\cf1\f51\fs20\ql exocrine pancreatic insufficiency due to cystic fibrosis or other conditions. STENDRA (avanafil) is approved by\plain\cf1\f51\fs20\ql FDA for erectile dysfunction (\u8220?ED\u8221?), and by the European Commission (\u8220?EC\u8221?) under\plain\cf1\f51\fs20\ql the trade name SPEDRA, for the treatment of ED. The Company commercializes Qsymia and PANCREAZE in\plain\cf1\f51\fs20\ql the U.S. through a specialty sales force supported by an internal commercial team. The Company licenses the\plain\cf1\f51\fs20\ql commercial rights to STENDRA/SPEDRA in the U.S., EU and other countries and to PANCREAZE in Canada on\plain\cf1\f51\fs20\ql a transitional basis. VI-0106 (tacrolimus) is in active clinical development and is being studied in patients with\plain\sa132\cf1\f51\fs20\ql pulmonary arterial hypertension (\u8220?PAH\u8221?).\par\pard\plain\fi792\cf1\f51\fs20\ql When reference is made to the \u8220?Company\u8221? or \u8220?VIVUS\u8221? in these footnotes, it\plain\cf1\f51\fs20\ql refers to the Delaware corporation, or VIVUS, Inc., and, unless the context otherwise requires, its California\plain\sa220\cf1\f51\fs20\ql predecessor, as well as all of its consolidated subsidiaries.\par\pard\plain\fi792\cf1\f51\fs20\ql At March 31, 2019, the Company\u8217?s accumulated deficit was approximately $888.5 million.\plain\cf1\f51\fs20\ql Management believes that the Company\u8217?s existing capital resources combined with anticipated future cash\plain\cf1\f51\fs20\ql flows will be sufficient to support its operating needs for at least the next twelve months. However, the Company\plain\cf1\f51\fs20\ql anticipates that it may require additional funding to service its existing debt, pursue development and commercial\plain\cf1\f51\fs20\ql opportunities, which could come in the form of a license, a co-development agreement, a merger or acquisition or\plain\cf1\f51\fs20\ql in some other form, or to create a pathway for centralized approval of the marketing authorization application for\plain\cf1\f51\fs20\ql Qsymia in the EU, conduct post-approval clinical studies for Qsymia, conduct non-clinical and clinical research\plain\cf1\f51\fs20\ql and development work to support regulatory submissions and applications for its current and future investigational\plain\cf1\f51\fs20\ql drug candidates, finance the costs involved in filing and prosecuting patent applications and enforcing or\plain\cf1\f51\fs20\ql defending its patent claims, if any, to fund operating expenses and manufacture quantities of the\plain\cf1\f51\fs20\ql Company\u8217?s investigational drug candidates and to make payments under its existing license agreements and\plain\sa220\cf1\f51\fs20\ql supply agreements.\par\pard\plain\fi792\cf1\f51\fs20\ql If the Company requires additional capital, it may seek any required additional funding through\plain\cf1\f51\fs20\ql collaborations, public and private equity or debt financings, capital lease transactions or other available financing\plain\cf1\f51\fs20\ql sources. Additional financing may not be available on acceptable terms, or at all. If additional funds are raised by\plain\cf1\f51\fs20\ql issuing equity securities, substantial dilution to existing stockholders may result. If adequate funds are not\plain\cf1\f51\fs20\ql available, the Company may be required to delay, reduce the scope of or eliminate one or more of its\plain\cf1\f51\fs20\ql commercialization or development programs or obtain funds through collaborations with others that are on\plain\cf1\f51\fs20\ql unfavorable terms or that may require the Company to relinquish rights to certain of its technologies, product\plain\sa220\cf1\f51\fs20\ql candidates or products that it would otherwise seek to develop on its own.\par\pard\plain\li220\sa132\fi-220\cf1\f51\fs20\i\ql Basis of Presentation\par\pard\plain\fi792\cf1\f51\fs20\ql The accompanying unaudited condensed consolidated financial statements have been prepared in\plain\cf1\f51\fs20\ql accordance with accounting principles generally accepted in the United States of America (\u8220?U.S.\plain\cf1\f51\fs20\ql GAAP\u8221?) for interim financial information and with the instructions to Form\~10-Q and Article\~10 of\plain\cf1\f51\fs20\ql Regulation S-X. Accordingly, they do not include all of the information and footnotes required by U.S. GAAP\plain\cf1\f51\fs20\ql for complete financial statements. In the opinion of management, all adjustments (consisting of normal recurring\plain\cf1\f51\fs20\ql adjustments) considered necessary for a fair presentation have been included. Operating results for the three\plain\cf1\f51\fs20\ql months ended March 31, 2019 are not necessarily indicative of the results that may be expected for the year\plain\cf1\f51\fs20\ql ending December\~31, 2019. Management has evaluated all events and transactions that occurred after March 31,\plain\cf1\f51\fs20\ql 2019 through the date these unaudited condensed consolidated financial statements were filed. There were no\plain\cf1\f51\fs20\ql events or transactions during this period that require recognition or disclosure in these unaudited condensed\plain\sa132\cf1\f51\fs20\ql consolidated financial statements. The condensed\par\pard\plain\cf1\f51\fs20\qc 7\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql consolidated balance sheet data as of December 31, 2018 was derived from audited financial statements, but does\plain\sa132\cf1\f51\fs20\ql not include all disclosures required by U.S. GAAP.\par\pard\plain\fi792\cf1\f51\fs20\ql The unaudited condensed consolidated financial statements should be read in conjunction with the audited\plain\cf1\f51\fs20\ql financial statements and notes thereto included in the Company\u8217?s Annual Report on Form\~10-K for the\plain\cf1\f51\fs20\ql year ended December 31, 2018 as filed on February 26, 2019 with the Securities and Exchange Commission\plain\cf1\f51\fs20\ql (\u8220?SEC\u8221?). Certain amounts have been reclassified to conform to current year presentation. The\plain\cf1\f51\fs20\ql unaudited condensed consolidated financial statements include the accounts of VIVUS, Inc. and its wholly-owned\plain\sa132\cf1\f51\fs20\ql subsidiaries. All significant intercompany accounts and transactions have been eliminated.\par\pard\plain\li220\sa132\fi-220\cf1\f51\fs20\i\ql Reverse Stock Split\par\pard\plain\fi792\cf1\f51\fs20\ql On September 10, 2018, the Company effected a one-for-10 reverse stock split of its common stock. As\plain\cf1\f51\fs20\ql a result of the reverse stock split, every 10 shares of the Company\u8217?s pre-reverse split common stock issued\plain\cf1\f51\fs20\ql and outstanding was combined and converted into one issued and outstanding share of post-reverse split common\plain\cf1\f51\fs20\ql stock without any change in the par value of the shares. Accordingly, an amount equal to the par value of the\plain\cf1\f51\fs20\ql decreased shares resulting from the reverse stock split was reclassified from \u8220?Common stock\u8221? to\plain\cf1\f51\fs20\ql \u8220?Additional paid-in capital.\u8221? No fractional shares were issued as a result of the reverse stock split;\plain\cf1\f51\fs20\ql any fractional shares that would have resulted were rounded up to the nearest whole share. Proportionate voting\plain\cf1\f51\fs20\ql rights and other rights of stockholders were not affected by the reverse stock split, other than as a result of the\plain\cf1\f51\fs20\ql rounding up of potential fractional shares. All stock options, warrants and restricted stock units outstanding and\plain\cf1\f51\fs20\ql common stock reserved for issuance under the Company\u8217?s equity incentive plans immediately prior to the\plain\cf1\f51\fs20\ql reverse stock split were adjusted by dividing the number of affected shares of common stock by 10 and, where\plain\cf1\f51\fs20\ql applicable, multiplying the exercise price by 10. All share and per share amounts related to common stock, stock\plain\cf1\f51\fs20\ql options, warrants and restricted stock units have been restated for all periods to give retroactive effect to the\plain\sa132\cf1\f51\fs20\ql reverse stock split.\par\pard\plain\li220\sa132\fi-220\cf1\f51\fs20\i\ql Use of Estimates\par\pard\plain\fi792\cf1\f51\fs20\ql The preparation of these unaudited condensed consolidated financial statements requires management to\plain\cf1\f51\fs20\ql make estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related\plain\cf1\f51\fs20\ql disclosures. On an ongoing basis, the Company evaluates its estimates, including critical accounting policies or\plain\cf1\f51\fs20\ql estimates related to available-for-sale securities, debt instruments, research and development expenses, income\plain\cf1\f51\fs20\ql taxes, inventories, revenues, contingencies and litigation and share-based compensation. The Company bases its\plain\cf1\f51\fs20\ql estimates on historical experience, information received from third parties and on various market specific and\plain\cf1\f51\fs20\ql other relevant assumptions that it believes to be reasonable under the circumstances, the results of which form the\plain\cf1\f51\fs20\ql basis for making judgments about the carrying values of assets and liabilities that are not readily apparent from\plain\cf1\f51\fs20\ql other sources. Actual results could differ significantly from those estimates under different assumptions or\plain\sa220\cf1\f51\fs20\ql conditions.\par\pard\plain\sa132\cf1\f51\fs20\i\ql Significant Accounting Policies\par\pard\plain\fi792\cf1\f51\fs20\ql There have been no changes to the Company\u8217?s significant accounting policies since the\plain\cf1\f51\fs20\ql Company\u8217?s Annual Report on Form 10-K for the year ended December 31, 2018 with the exception of\plain\sa132\cf1\f51\fs20\ql accounting for leases. See Note 12.\par\pard\plain\li220\sa132\fi-220\cf1\f51\fs20\i\ql Recent Accounting Pronouncement Adopted\par\pard\plain\fi792\cf1\f51\fs20\ql In February 2016, the FASB issued Accounting Standards Update 2016-02,\plain\cf1\f51\fs20\i\ql Leases\plain\cf1\f51\fs20\ql (Topic 842), which\plain\cf1\f51\fs20\ql modifies the accounting by lessees for all leases with a term greater than 12 months. This standard requires\plain\cf1\f51\fs20\ql lessees to recognize on the balance sheet the assets and liabilities for the rights and obligations created by those\plain\cf1\f51\fs20\ql leases. The Company adopted this standard on January 1, 2019 using the modified retrospective transition method,\plain\cf1\f51\fs20\ql and as a result did not adjust comparative periods. The Company\u8217?s only significant lease is its operating\plain\cf1\f51\fs20\ql lease for its corporate headquarters, although it has several smaller leases, including financing leases for its\plain\sa132\cf1\f51\fs20\ql automobile fleet and copiers. See Note 12.\par\pard\plain\sa132\cf1\f51\fs20\i\ql Recent Accounting Pronouncements Not Yet Adopted\par\pard\plain\fi792\cf1\f51\fs20\ql In June 2016, the FASB issued Accounting Standards Update 2016-13,\plain\cf1\f51\fs20\i\ql Measurement of Credit Losses on\plain\cf1\f51\fs20\i\ql Financial Instruments\plain\cf1\f51\fs20\ql , which requires credit losses on most financial assets measured at amortized cost and\plain\cf1\f51\fs20\ql certain other instruments to be measured using an expected credit loss model, referred to as the current expected\plain\cf1\f51\fs20\ql credit loss (CECL) model. Under this model, entities will estimate credit losses over the entire contractual term of\plain\sa132\cf1\f51\fs20\ql the instrument. This standard is effective for fiscal years beginning after December 15, 2019 and early adoption is\par\pard\plain\cf1\f51\fs20\qc 8\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql permitted. The Company is evaluating the potential impact of this standard, but does not expect it to have a\plain\sa132\cf1\f51\fs20\ql material impact on its consolidated financial statements.\par\pard\plain\fi792\cf1\f51\fs20\ql In August 2018, the FASB issued Accounting Standards Update 2018-13,\plain\cf1\f51\fs20\i\ql Fair Value\plain\cf1\f51\fs20\i\ql Measurement\plain\cf1\f51\fs20\ql \~\plain\cf1\f51\fs20\i\ql (Topic 820): Disclosure Framework-Changes to the Disclosure Requirements for Fair Value\plain\cf1\f51\fs20\i\ql Measurement\plain\cf1\f51\fs20\ql , which adds disclosure requirements to Topic 820 for the range and weighted average of significant\plain\cf1\f51\fs20\ql unobservable inputs used to develop Level 3 fair value measurements. This standard is effective for fiscal years\plain\cf1\f51\fs20\ql beginning after December 31, 2019 and early adoption is permitted. The Company is evaluating the provisions of\plain\sa132\cf1\f51\fs20\ql this guidance, but currently does not expect it to have a material impact on its consolidated financial statements.\par\pard\plain\sa396\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sa132\cf1\f51\fs22\b\ql 2. REVENUES\par\pard\plain\fi792\cf1\f51\fs20\ql On January 1, 2018, the Company adopted Accounting Standards Update No. 2014-09,\plain\cf1\f51\fs20\i\ql Revenue from\plain\cf1\f51\fs20\i\ql Contracts with Customers\plain\cf1\f51\fs20\ql , (\u8220?Topic 606\u8221?). Topic 606 supersedes the revenue recognition\plain\cf1\f51\fs20\ql requirements in Topic 605\plain\cf1\f51\fs20\i\ql Revenue Recognition\plain\cf1\f51\fs20\ql (\u8220?Topic 605\u8221?) and requires entities to recognize\plain\cf1\f51\fs20\ql revenue when control of the promised goods or services is transferred to customers at an amount that reflects the\plain\sa132\cf1\f51\fs20\ql consideration to which the entity expects to be entitled to in exchange for those goods or services.\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Revenue Recognition\par\pard\plain\fi792\cf1\f51\fs20\ql For all revenue transactions, the Company evaluates its contracts with its customers to determine revenue\plain\sa132\cf1\f51\fs20\ql recognition using the following five-step model:\par\pard\plain\fi792\cf1\f51\fs20\ql 1)The Company identifies the contract(s) with a customer\par\pard\plain\fi792\cf1\f51\fs20\ql 2)The Company identifies the performance obligations in the contract\par\pard\plain\fi792\cf1\f51\fs20\ql 3)The Company determines the transaction price\par\pard\plain\fi792\cf1\f51\fs20\ql 4)The Company allocates the transaction price to the identified performance obligations\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql 5)The Company recognizes revenue when (or as) the entity satisfies a performance obligation\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Product Revenue\par\pard\plain\fi792\cf1\f51\fs20\ql Product revenue is recognized at the time of shipment at which time the Company has satisfied its\plain\cf1\f51\fs20\ql performance obligation. Product revenue is recognized net of consideration paid to the Company\u8217?s\plain\cf1\f51\fs20\ql customers, wholesalers and certified pharmacies. Such consideration is for services rendered by the wholesalers\plain\cf1\f51\fs20\ql and pharmacies in accordance with the wholesalers and certified pharmacy services network agreements, and\plain\cf1\f51\fs20\ql includes a fixed rate per prescription shipped and monthly program management and data fees. These services are\plain\cf1\f51\fs20\ql not deemed sufficiently separable from the customers\u8217? purchase of the product; therefore, they are recorded\plain\sa220\cf1\f51\fs20\ql as a reduction of revenue at the time of revenue recognition.\par\pard\plain\fi792\cf1\f51\fs20\ql Other product revenue allowances include a reserve for estimated product returns, certain prompt pay\plain\cf1\f51\fs20\ql discounts and allowances offered to the Company\u8217?s customers, program rebates and chargebacks. These\plain\cf1\f51\fs20\ql product revenue allowances are recognized as a reduction of revenue at the date at which the related revenue is\plain\cf1\f51\fs20\ql recognized. The Company also offers discount programs to patients. Calculating certain of these items involves\plain\cf1\f51\fs20\ql estimates and judgments based on sales or invoice data, contractual terms, utilization rates, new information\plain\cf1\f51\fs20\ql regarding changes in these programs\u8217? regulations and guidelines that would impact the amount of the actual\plain\cf1\f51\fs20\ql rebates or chargebacks. The Company reviews the adequacy of product revenue allowances on a quarterly basis.\plain\cf1\f51\fs20\ql Amounts accrued for product revenue allowances are adjusted when trends or significant events indicate that\plain\sa220\cf1\f51\fs20\ql adjustment is appropriate and to reflect actual experience. See Note 9 for product reserve balances.\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Supply Revenue\par\pard\plain\fi792\cf1\f51\fs20\ql The Company produces STENDRA/SPEDRA through a contract manufacturing partner and then sells it\plain\cf1\f51\fs20\ql to the Company\u8217?s commercialization partners. The Company is the primary responsible party in the\plain\cf1\f51\fs20\ql commercial supply arrangements and bears significant risk in the fulfillment of the obligations, including risks\plain\cf1\f51\fs20\ql associated with manufacturing, regulatory compliance and quality assurance, as well as inventory, financial and\plain\cf1\f51\fs20\ql credit loss. As such, the Company recognizes supply revenue on a gross basis as the principal party in the\plain\cf1\f51\fs20\ql arrangements. The Company recognizes supply revenue at the time of shipment and, in the unusual case where\plain\sa220\cf1\f51\fs20\ql the product does not meet\par\pard\plain\cf1\f51\fs20\qc 9\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql contractually-specified product dating criteria at the time of shipment to the partner, the Company records a\plain\sa220\cf1\f51\fs20\ql reserve for estimated product returns. There are no such reserves as of March 31, 2019.\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql License and Milestone Revenue\par\pard\plain\fi792\cf1\f51\fs20\ql License and milestone revenues related to arrangements, usually license and/or supply agreements,\plain\cf1\f51\fs20\ql entered into by the Company are recognized by following the five-step process outlined above. The allocation and\plain\cf1\f51\fs20\ql timing of recognition of such revenue will be determined by that process and the amounts recognized and the\plain\cf1\f51\fs20\ql timing of that recognition may not exactly follow the wording of the agreement as the amount allocated following\plain\cf1\f51\fs20\ql the accounting analysis of the agreement may differ and the timing of recognition of a significant performance\plain\sa220\cf1\f51\fs20\ql obligation may predate the contractual date.\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Royalty Revenue\par\pard\plain\fi792\cf1\f51\fs20\ql The Company relies on data provided by its collaboration partner in determining its contractually-based\plain\cf1\f51\fs20\ql royalty revenue. Such data includes accounting estimates and reports for various discounts and allowances,\plain\cf1\f51\fs20\ql including product returns. The Company records royalty revenues based on the best data available and makes any\plain\sa220\cf1\f51\fs20\ql adjustments to such revenues as such information becomes available.{\*\bkmkstart _hlk5371380_12866592}{\*\bkmkend _hlk5371380_12866592}\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Revenue by Source and Geography\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql Revenue disaggregated by revenue source and by geographic region was as follows (in thousands):
\par\pard\plain
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\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell{
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\pard\plain\intbl\cf1\f51\fs14\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc Three Months Ended March\~31,\~\cell{
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\pard\plain\intbl\cf1\f51\fs14\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs14\qc \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc 2018\cell{
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\pard\plain\intbl\cf1\f51\fs14\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc U.S.\cell\pard\plain\intbl\cf1\f51\fs14\qc \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc ROW\cell\pard\plain\intbl\cf1\f51\fs14\qc \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc Total\cell\pard\plain\intbl\cf1\f51\fs14\qc \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc U.S.\cell\pard\plain\intbl\cf1\f51\fs14\qc \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc ROW\cell\pard\plain\intbl\cf1\f51\fs14\qc \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc Total\cell{
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\pard\plain\intbl\cf1\f51\fs18\ql Qsymia\u8212?Net product revenue\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 8,423\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 8,423\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 9,632\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 9,632\cell{
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\pard\plain\intbl\cf1\f51\fs18\ql PANCREAZE - Net product revenue\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 5,074\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 5,074\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell{
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\pard\plain\intbl\cf1\f51\fs18\ql PANCREAZE - Royalty revenue\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 570\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 570\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell{
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\pard\plain\intbl\cf1\f51\fs18\ql STENDRA/SPEDRA\u8212?Supply\plain\intbl\cf1\f51\fs18\ql revenue\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,604\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,604\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 547\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,136\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,683\cell{
{\trowd\trqc\clvertalb\cellx2952\clvertalb\cellx3132\clvertalb\cellx3876\clvertalb\cellx4008\clvertalb\cellx4235\clvertalb\cellx4979\clvertalb\cellx5285\clvertalb\cellx5495\clvertalb\cellx6102\clvertalb\cellx6234\clvertalb\cellx6414\clvertalb\cellx7158\clvertalb\cellx7290\clvertalb\cellx7517\clvertalb\cellx8261\clvertalb\cellx8567\clvertalb\cellx8777\clvertalb\cellx9521\trrh446\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2952\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3132\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3876\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4008\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4235\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4979\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5285\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5495\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6102\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6234\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6414\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7158\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7290\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7517\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8261\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8567\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8777\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9521\trrh446
\pard\plain\intbl\cf1\f51\fs18\ql STENDRA/SPEDRA\u8212?Royalty\plain\intbl\cf1\f51\fs18\ql revenue\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 475\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 475\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 585\cell\pard\plain\intbl\cf1\f51\fs18\qr \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 585\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2952\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3132\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3876\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4008\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4235\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4979\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5285\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5495\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6102\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6234\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6414\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7158\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7290\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7517\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8261\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8567\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8777\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9521\trrh446\row}}}
{\trowd\trqc\clvertalb\cellx2952\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3132\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3876\clvertalb\cellx4008\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4235\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4979\clvertalb\cellx5285\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5495\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6102\clvertalb\cellx6234\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6414\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7158\clvertalb\cellx7290\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7517\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8261\clvertalb\cellx8567\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8777\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9521\trrh223
\pard\plain\intbl\li264\cf1\f51\fs18\ql Total revenue\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 13,497\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 2,649\cell\pard\plain\intbl\cf1\f51\fs18\ql (1)\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 16,146\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 10,179\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,721\cell\pard\plain\intbl\cf1\f51\fs18\ql (2)\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 11,900\cell{
{\trowd\trqc\clvertalb\cellx2952\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3132\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3876\clvertalb\cellx4008\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4235\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4979\clvertalb\cellx5285\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5495\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6102\clvertalb\cellx6234\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6414\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7158\clvertalb\cellx7290\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7517\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8261\clvertalb\cellx8567\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8777\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9521\trrh223\row}}}\pard\plain\cf1\f51\fs10\ql \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1180\clvertalc\cellx1440\cellx9529\trrh562
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa44\cf1\f51\fs20\ql (1)\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $2.0 million of which was attributable to Germany and $0.6 million of which was attributable to\plain\intbl\sa44\cf1\f51\fs20\ql Canada.\cell{
{\trowd\clvertalc\cellx720\cellx1180\clvertalc\cellx1440\cellx9529\trrh562\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1180\clvertalc\cellx1440\cellx9529\trrh292
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa44\cf1\f51\fs20\ql (2)\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa44\cf1\f51\fs20\ql $1.7 million of which was attributable to Germany.\cell{
{\trowd\clvertalc\cellx720\cellx1180\clvertalc\cellx1440\cellx9529\trrh292\row}}}\pard\plain\sa44\cf1\f51\fs20\ql \~\par\pard\plain\sa132\cf1\f51\fs20\ql Revenue and cost of goods sold by source was as follows (in thousands):
\par\pard\plain
{\trowd\trqc\clvertalb\cellx1148\clvertalb\cellx1445\clvertalb\cellx2216\clvertalb\cellx2353\clvertalb\cellx2882\clvertalb\cellx3653\clvertalb\cellx3790\clvertalb\cellx4227\clvertalb\cellx4998\clvertalb\cellx5135\clvertalb\cellx5353\clvertalb\cellx5982\clvertalb\cellx6119\clvertalb\cellx6416\clvertalb\cellx7187\clvertalb\cellx7324\clvertalb\cellx7761\clvertalb\cellx8532\clvertalb\cellx8669\clvertalb\cellx8887\clvertalb\cellx9516\trrh66
\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell{
{\trowd\trqc\clvertalb\cellx1148\clvertalb\cellx1445\clvertalb\cellx2216\clvertalb\cellx2353\clvertalb\cellx2882\clvertalb\cellx3653\clvertalb\cellx3790\clvertalb\cellx4227\clvertalb\cellx4998\clvertalb\cellx5135\clvertalb\cellx5353\clvertalb\cellx5982\clvertalb\cellx6119\clvertalb\cellx6416\clvertalb\cellx7187\clvertalb\cellx7324\clvertalb\cellx7761\clvertalb\cellx8532\clvertalb\cellx8669\clvertalb\cellx8887\clvertalb\cellx9516\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1148\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh185
\pard\plain\intbl\cf1\f51\fs14\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc Three Months Ended March\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1148\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh185\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1148\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5988\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6125\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9527\trrh185
\pard\plain\intbl\cf1\f51\fs14\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs14\qc \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc 2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1148\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5988\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6125\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9527\trrh185\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1148\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2217\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2354\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3654\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3791\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5000\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5137\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5985\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6122\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7191\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7328\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8537\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8674\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9522\trrh370
\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc Qsymia\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc PANCREAZE\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc STENDRA/\plain\intbl\cf1\f51\fs14\b\qc SPEDRA\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc Total\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc Qsymia\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc STENDRA/\plain\intbl\cf1\f51\fs14\b\qc SPEDRA\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs14\b\qc Total\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1148\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2217\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2354\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3654\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3791\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5000\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5137\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5985\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6122\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7191\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7328\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8537\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8674\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9522\trrh370\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1148\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1445\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2216\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2882\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3653\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3790\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4227\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4998\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5135\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5982\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6119\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6416\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7187\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7324\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7761\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8532\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8669\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9516\trrh463
\pard\plain\intbl\cf1\f51\fs18\ql Net product\plain\intbl\cf1\f51\fs18\ql revenue\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 8,423\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 5,074\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 13,497\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 9,632\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 9,632\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1148\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1445\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2216\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2882\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3653\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3790\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4227\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4998\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5135\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5982\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6119\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6416\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7187\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7324\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7761\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8532\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8669\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9516\trrh463\row}}}
{\trowd\trqc\clvertalb\cellx1148\clvertalb\cellx1445\clvertalb\cellx2216\clvertalb\cellx2353\clvertalb\cellx2882\clvertalb\cellx3653\clvertalb\cellx3790\clvertalb\cellx4227\clvertalb\cellx4998\clvertalb\cellx5135\clvertalb\cellx5353\clvertalb\cellx5982\clvertalb\cellx6119\clvertalb\cellx6416\clvertalb\cellx7187\clvertalb\cellx7324\clvertalb\cellx7761\clvertalb\cellx8532\clvertalb\cellx8669\clvertalb\cellx8887\clvertalb\cellx9516\trrh463
\pard\plain\intbl\cf1\f51\fs18\ql Supply\plain\intbl\cf1\f51\fs18\ql revenue\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,604\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,604\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,683\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,683\cell{
{\trowd\trqc\clvertalb\cellx1148\clvertalb\cellx1445\clvertalb\cellx2216\clvertalb\cellx2353\clvertalb\cellx2882\clvertalb\cellx3653\clvertalb\cellx3790\clvertalb\cellx4227\clvertalb\cellx4998\clvertalb\cellx5135\clvertalb\cellx5353\clvertalb\cellx5982\clvertalb\cellx6119\clvertalb\cellx6416\clvertalb\cellx7187\clvertalb\cellx7324\clvertalb\cellx7761\clvertalb\cellx8532\clvertalb\cellx8669\clvertalb\cellx8887\clvertalb\cellx9516\trrh463\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1148\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1445\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2216\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2353\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2882\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3653\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3790\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4227\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4998\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5135\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5353\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5982\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6119\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6416\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7187\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7324\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7761\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8532\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8669\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9516\trrh463
\pard\plain\intbl\cf1\f51\fs18\ql Royalty\plain\intbl\cf1\f51\fs18\ql revenue\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 570\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 475\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,045\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 585\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 585\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1148\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1445\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2216\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2353\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2882\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3653\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3790\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4227\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4998\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5135\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5353\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5982\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6119\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6416\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7187\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7324\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7761\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8532\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8669\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9516\trrh463\row}}}
{\trowd\trqc\clvertalb\cellx1148\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx1445\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2216\clvertalb\cellx2353\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2882\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3653\clvertalb\cellx3790\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4227\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4998\clvertalb\cellx5135\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5353\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5982\clvertalb\cellx6119\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6416\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7187\clvertalb\cellx7324\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7761\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8532\clvertalb\cellx8669\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8887\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9516\trrh463
\pard\plain\intbl\li264\cf1\f51\fs18\ql Total\plain\intbl\li264\cf1\f51\fs18\ql revenue\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 8,423\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 5,644\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 2,079\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 16,146\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 9,632\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 2,268\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 11,900\cell{
{\trowd\trqc\clvertalb\cellx1148\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx1445\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2216\clvertalb\cellx2353\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2882\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3653\clvertalb\cellx3790\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4227\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4998\clvertalb\cellx5135\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5353\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5982\clvertalb\cellx6119\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6416\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7187\clvertalb\cellx7324\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7761\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8532\clvertalb\cellx8669\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8887\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9516\trrh463\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1148\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1445\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2216\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2882\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3653\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3790\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4227\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4998\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5135\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5982\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6119\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6416\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7187\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7324\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7761\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8532\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8669\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9516\trrh231
\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1148\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1445\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2216\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2882\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3653\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3790\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4227\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4998\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5135\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5982\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6119\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6416\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7187\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7324\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7761\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8532\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8669\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9516\trrh231\row}}}
{\trowd\trqc\clvertalb\cellx1148\clvertalb\cellx1445\clvertalb\cellx2216\clvertalb\cellx2353\clvertalb\cellx2882\clvertalb\cellx3653\clvertalb\cellx3790\clvertalb\cellx4227\clvertalb\cellx4998\clvertalb\cellx5135\clvertalb\cellx5353\clvertalb\cellx5982\clvertalb\cellx6119\clvertalb\cellx6416\clvertalb\cellx7187\clvertalb\cellx7324\clvertalb\cellx7761\clvertalb\cellx8532\clvertalb\cellx8669\clvertalb\cellx8887\clvertalb\cellx9516\trrh925
\pard\plain\intbl\cf1\f51\fs18\ql Cost of goods\plain\intbl\cf1\f51\fs18\ql sold\plain\intbl\cf1\f51\fs18\ql (excluding\plain\intbl\cf1\f51\fs18\ql amortization)\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,382\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,461\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,465\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 4,308\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,044\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 1,586\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 2,630\cell{
{\trowd\trqc\clvertalb\cellx1148\clvertalb\cellx1445\clvertalb\cellx2216\clvertalb\cellx2353\clvertalb\cellx2882\clvertalb\cellx3653\clvertalb\cellx3790\clvertalb\cellx4227\clvertalb\cellx4998\clvertalb\cellx5135\clvertalb\cellx5353\clvertalb\cellx5982\clvertalb\cellx6119\clvertalb\cellx6416\clvertalb\cellx7187\clvertalb\cellx7324\clvertalb\cellx7761\clvertalb\cellx8532\clvertalb\cellx8669\clvertalb\cellx8887\clvertalb\cellx9516\trrh925\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1148\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1445\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2216\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2882\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3653\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3790\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4227\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4998\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5135\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5982\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6119\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6416\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7187\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7324\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7761\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8532\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8669\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9516\trrh694
\pard\plain\intbl\cf1\f51\fs18\ql Amortization\plain\intbl\cf1\f51\fs18\ql of intangible\plain\intbl\cf1\f51\fs18\ql assets\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 91\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 3,547\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 3,638\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 91\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs18\ql \~\cell\pard\plain\intbl\cf1\f51\fs18\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs18\qr 91\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1148\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1445\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2216\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2882\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3653\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3790\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4227\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4998\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5135\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5353\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5982\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6119\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6416\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7187\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7324\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7761\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8532\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8669\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9516\trrh694\row}}}\pard\plain\cf1\f51\fs2\ql \~\par\pard\plain\sa132\fi726\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\qc 10\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sa132\cf1\f51\fs22\ql \~{\*\bkmkstart _hlk486514086_12866592}{\*\bkmkend _hlk486514086_12866592}\par\pard\plain\sa132\cf1\f51\fs22\b\ql 3. SHARE-BASED COMPENSATION\par\pard\plain\fi726\cf1\f51\fs20\ql Total share-based compensation expense for all of the Company\u8217?s share-based awards was as\plain\sa132\cf1\f51\fs20\ql follows (in thousands):
\par\pard\plain
{\trowd\clvertalb\cellx7021\clvertalb\cellx7244\clvertalb\cellx8101\clvertalb\cellx8422\clvertalb\cellx8645\clvertalb\cellx9612\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\clvertalb\cellx7021\clvertalb\cellx7244\clvertalb\cellx8101\clvertalb\cellx8422\clvertalb\cellx8645\clvertalb\cellx9612\trrh66\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7021\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9612\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7021\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9612\trrh198\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7021\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9612\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7021\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9612\trrh198\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7021\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8102\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9611\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7021\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8102\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8423\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9611\trrh198\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7021\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7244\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8101\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8422\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8645\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Cost of goods sold\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 14\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 13\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7021\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7244\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8101\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8422\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8645\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248\row}}}
{\trowd\clvertalb\cellx7021\clvertalb\cellx7244\clvertalb\cellx8101\clvertalb\cellx8422\clvertalb\cellx8645\clvertalb\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Selling and marketing\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 70\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 87\cell{
{\trowd\clvertalb\cellx7021\clvertalb\cellx7244\clvertalb\cellx8101\clvertalb\cellx8422\clvertalb\cellx8645\clvertalb\cellx9612\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7021\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7244\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8101\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8422\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8645\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql General and administrative\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 329\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 745\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7021\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7244\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8101\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8422\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8645\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248\row}}}
{\trowd\clvertalb\cellx7021\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7244\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8101\clvertalb\cellx8422\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8645\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Research and development\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 55\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 80\cell{
{\trowd\clvertalb\cellx7021\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7244\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8101\clvertalb\cellx8422\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8645\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9612\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7021\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7244\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8101\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8422\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8645\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh264
\pard\plain\intbl\li132\cf1\f51\fs20\ql Total share-based compensation expense\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 468\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 925\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7021\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7244\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8101\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8422\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8645\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh264\row}}}\pard\plain\sb132\fi792\cf1\f51\fs20\ql There were no share-based compensation costs capitalized as part of the cost of inventory for the three\plain\cf1\f51\fs20\ql months ended March 31, 2019. Share-based compensation costs capitalized as part of the cost of inventory were\plain\cf1\f51\fs20\ql $1,000 for the three months ended March 31, 2018.\par\pard\plain\sb132\sa396\fi792\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs22\b\ql 4.{\*\bkmkstart _hlk5371454_12866592}{\*\bkmkend _hlk5371454_12866592}\plain\sa132\cf1\f51\fs22\b\ql CASH, CASH EQUIVALENTS, AND AVAILABLE-FOR-SALE SECURITIES\par\pard\plain\fi792\cf1\f51\fs20\ql The fair value and the amortized cost of cash, cash equivalents, and available-for-sale securities by major\plain\sa132\cf1\f51\fs20\ql security type are presented in the tables that follow (in thousands).
\par\pard\plain
{\trowd\trqc\clvertalb\cellx3801\clvertalb\cellx4205\clvertalb\cellx5095\clvertalb\cellx5375\clvertalb\cellx5788\clvertalb\cellx6622\clvertalb\cellx6902\clvertalb\cellx7315\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx3801\clvertalb\cellx4205\clvertalb\cellx5095\clvertalb\cellx5375\clvertalb\cellx5788\clvertalb\cellx6622\clvertalb\cellx6902\clvertalb\cellx7315\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3801\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9611\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc As of March\~31,\~2019\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3801\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9611\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3801\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4205\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5095\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5375\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8151\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8431\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8837\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9612\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gross\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gross\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3801\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4205\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5095\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5375\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8151\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8431\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8837\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9612\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3801\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5095\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5375\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8151\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8431\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9610\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Amortized\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Unrealized\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Unrealized\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Estimated\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3801\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5095\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5375\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8151\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8431\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9610\trrh198\row}}}
{\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3801\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5095\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5375\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8151\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8431\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9610\trrh396
\pard\plain\intbl\cf1\f51\fs16\b\ql Cash and cash equivalents and available-for-sale\plain\intbl\cf1\f51\fs16\b\ql securities\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Cost\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gains\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Losses\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Fair\~Value\cell{
{\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3801\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5095\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5375\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8151\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8431\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9610\trrh396\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3801\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4205\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5375\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5788\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6622\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6902\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7315\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Cash and money market funds\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 23,021\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 23,021\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3801\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4205\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5375\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5788\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6622\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6902\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7315\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3801\clvertalb\cellx4205\clvertalb\cellx5095\clvertalb\cellx5375\clvertalb\cellx5788\clvertalb\cellx6622\clvertalb\cellx6902\clvertalb\cellx7315\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql U.S. Treasury securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 39,004\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 51\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (59)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 38,996\cell{
{\trowd\trqc\clvertalb\cellx3801\clvertalb\cellx4205\clvertalb\cellx5095\clvertalb\cellx5375\clvertalb\cellx5788\clvertalb\cellx6622\clvertalb\cellx6902\clvertalb\cellx7315\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3801\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4205\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5375\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5788\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6622\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6902\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7315\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Corporate debt securities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 42,649\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 77\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (90)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 42,636\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3801\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4205\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5375\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5788\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6622\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6902\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7315\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3801\clvertalb\cellx4205\clvertalb\cellx5095\clvertalb\cellx5375\clvertalb\cellx5788\clvertalb\cellx6622\clvertalb\cellx6902\clvertalb\cellx7315\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 104,674\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 128\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (149)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 104,653\cell{
{\trowd\trqc\clvertalb\cellx3801\clvertalb\cellx4205\clvertalb\cellx5095\clvertalb\cellx5375\clvertalb\cellx5788\clvertalb\cellx6622\clvertalb\cellx6902\clvertalb\cellx7315\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3801\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4205\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5375\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5788\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6622\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6902\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7315\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh495
\pard\plain\intbl\cf1\f51\fs20\ql Less amounts classified as cash and cash\plain\intbl\cf1\f51\fs20\ql equivalents\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (23,021)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (23,021)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3801\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4205\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5375\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5788\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6622\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6902\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7315\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh495\row}}}
{\trowd\trqc\clvertalb\cellx3801\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4205\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5095\clvertalb\cellx5375\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5788\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6622\clvertalb\cellx6902\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7315\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8149\clvertalb\cellx8429\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8835\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Total available-for-sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 81,653\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 128\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (149)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 81,632\cell{
{\trowd\trqc\clvertalb\cellx3801\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4205\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5095\clvertalb\cellx5375\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5788\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6622\clvertalb\cellx6902\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7315\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8149\clvertalb\cellx8429\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8835\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9612\trrh248\row}}}\pard\plain\cf1\f51\fs2\ql \~\par\pard\plain\cf1\f51\fs20\ql \~
\par\pard\plain
{\trowd\trqc\clvertalb\cellx3806\clvertalb\cellx4210\clvertalb\cellx5097\clvertalb\cellx5377\clvertalb\cellx5790\clvertalb\cellx6623\clvertalb\cellx6903\clvertalb\cellx7316\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx3806\clvertalb\cellx4210\clvertalb\cellx5097\clvertalb\cellx5377\clvertalb\cellx5790\clvertalb\cellx6623\clvertalb\cellx6903\clvertalb\cellx7316\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3806\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9611\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc As of December\~31,\~2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3806\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9611\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3806\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4210\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5097\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5377\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8149\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8429\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8835\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9612\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gross\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gross\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3806\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4210\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5097\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5377\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8149\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8429\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8835\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9612\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3806\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5097\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5377\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8149\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8429\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9608\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Amortized\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Unrealized\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Unrealized\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Estimated\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3806\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5097\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5377\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8149\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8429\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9608\trrh198\row}}}
{\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3806\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5097\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5377\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8149\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8429\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9608\trrh396
\pard\plain\intbl\cf1\f51\fs16\b\ql Cash and cash equivalents and available-for-sale\plain\intbl\cf1\f51\fs16\b\ql securities\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Cost\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Gains\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Losses\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Fair\~Value\cell{
{\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3806\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5097\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5377\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6623\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6903\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8149\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8429\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9608\trrh396\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4210\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5097\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5377\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5790\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6623\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6903\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7316\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Cash and money market funds\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 30,411\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 30,411\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4210\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5097\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5377\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5790\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6623\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6903\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7316\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3806\clvertalb\cellx4210\clvertalb\cellx5097\clvertalb\cellx5377\clvertalb\cellx5790\clvertalb\cellx6623\clvertalb\cellx6903\clvertalb\cellx7316\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql U.S. Treasury securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 42,261\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 34\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (111)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 42,184\cell{
{\trowd\trqc\clvertalb\cellx3806\clvertalb\cellx4210\clvertalb\cellx5097\clvertalb\cellx5377\clvertalb\cellx5790\clvertalb\cellx6623\clvertalb\cellx6903\clvertalb\cellx7316\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4210\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5097\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5377\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5790\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6623\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6903\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7316\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Corporate debt securities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 38,848\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~9\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (203)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 38,654\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4210\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5097\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5377\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5790\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6623\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6903\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7316\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3806\clvertalb\cellx4210\clvertalb\cellx5097\clvertalb\cellx5377\clvertalb\cellx5790\clvertalb\cellx6623\clvertalb\cellx6903\clvertalb\cellx7316\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 111,520\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 43\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (314)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 111,249\cell{
{\trowd\trqc\clvertalb\cellx3806\clvertalb\cellx4210\clvertalb\cellx5097\clvertalb\cellx5377\clvertalb\cellx5790\clvertalb\cellx6623\clvertalb\cellx6903\clvertalb\cellx7316\clvertalb\cellx8149\clvertalb\cellx8429\clvertalb\cellx8835\clvertalb\cellx9612\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4210\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5097\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5377\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5790\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6623\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6903\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7316\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh495
\pard\plain\intbl\cf1\f51\fs20\ql Less amounts classified as cash and cash\plain\intbl\cf1\f51\fs20\ql equivalents\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (30,411)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (30,411)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4210\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5097\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5377\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5790\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6623\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6903\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7316\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8149\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8429\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8835\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9612\trrh495\row}}}
{\trowd\trqc\clvertalb\cellx3806\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4210\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5097\clvertalb\cellx5377\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5790\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6623\clvertalb\cellx6903\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7316\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8149\clvertalb\cellx8429\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8835\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9612\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Total available-for-sale securities\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 81,109\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 43\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (314)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 80,838\cell{
{\trowd\trqc\clvertalb\cellx3806\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4210\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5097\clvertalb\cellx5377\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5790\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6623\clvertalb\cellx6903\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7316\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8149\clvertalb\cellx8429\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8835\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9612\trrh248\row}}}\pard\plain\sb132\fi792\cf1\f51\fs20\ql As of March 31, 2019, the Company\u8217?s available-for-sale securities had original contractual\plain\cf1\f51\fs20\ql maturities up to 57 months. However, the Company may sell these securities prior to their stated maturities in\plain\cf1\f51\fs20\ql response to changes in the availability of and the yield on alternative investments as well as liquidity requirements.\plain\cf1\f51\fs20\ql As these securities are readily marketable and are viewed by the Company as available to support current\plain\cf1\f51\fs20\ql operations, securities with maturities beyond 12 months are classified as current assets. Due to their short-term\plain\cf1\f51\fs20\ql maturities, the Company believes that the fair value of its bank deposits, accounts payable and accrued expenses\plain\sa132\cf1\f51\fs20\ql approximate their carrying value.\par\pard\plain\cf1\f51\fs20\qc 11\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Fair Value Measurements\par\pard\plain\fi792\cf1\f51\fs20\ql Fair value is defined as the exchange price that would be received for an asset or paid to transfer a\plain\cf1\f51\fs20\ql liability in the principal or most advantageous market for the asset or liability in an orderly transaction between\plain\cf1\f51\fs20\ql market participants on the measurement date. Valuation techniques used to measure fair value must maximize the\plain\cf1\f51\fs20\ql use of observable inputs and minimize the use of unobservable inputs. Three levels of inputs, of which the first\plain\sa132\cf1\f51\fs20\ql two are considered observable and the last unobservable, may be used to measure fair value. The three levels are:
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1440\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql Level 1 \u8212? Quoted prices in active markets for identical assets or liabilities.\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1440\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1440\cellx9529\trrh1148
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Level 2 \u8212? Inputs other than Level 1 that are observable, either directly or indirectly, such\plain\intbl\cf1\f51\fs20\ql as quoted prices for similar assets or liabilities; quoted prices in markets that are not active; or\plain\intbl\cf1\f51\fs20\ql other inputs that are observable or can be corroborated by observable market data for\plain\intbl\sa132\cf1\f51\fs20\ql substantially the full term of the assets or liabilities.\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1440\cellx9529\trrh1148\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1440\cellx9529\trrh630
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Level 3 \u8212? Unobservable inputs that are supported by little or no market activity and that\plain\intbl\sa132\cf1\f51\fs20\ql are significant to the fair value of the assets or liabilities.\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1440\cellx9529\trrh630\row}}}\pard\plain\fi792\cf1\f51\fs20\ql The following table represents the fair value hierarchy for our cash equivalents and available-for-sale\plain\sa132\cf1\f51\fs20\ql securities by major security type (in thousands):
\par\pard\plain
{\trowd\trqc\clvertalb\cellx4164\clvertalb\cellx4390\clvertalb\cellx5206\clvertalb\cellx5486\clvertalb\cellx5712\clvertalb\cellx6528\clvertalb\cellx6808\clvertalb\cellx7034\clvertalb\cellx7850\clvertalb\cellx8130\clvertalb\cellx8352\clvertalb\cellx9163\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx4164\clvertalb\cellx4390\clvertalb\cellx5206\clvertalb\cellx5486\clvertalb\cellx5712\clvertalb\cellx6528\clvertalb\cellx6808\clvertalb\cellx7034\clvertalb\cellx7850\clvertalb\cellx8130\clvertalb\cellx8352\clvertalb\cellx9163\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9163\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc As of March\~31,\~2019\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9163\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5207\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5487\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6530\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6810\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7853\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8133\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9162\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level 1\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level 2\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level 3\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Total\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5207\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5487\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6530\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6810\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7853\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8133\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9162\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4164\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4390\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5206\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5486\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5712\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6528\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6808\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7034\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7850\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8130\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8352\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9163\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Cash and money market funds\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 23,021\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 23,021\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4164\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4390\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5206\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5486\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5712\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6528\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6808\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7034\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7850\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8130\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8352\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9163\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4164\clvertalb\cellx4390\clvertalb\cellx5206\clvertalb\cellx5486\clvertalb\cellx5712\clvertalb\cellx6528\clvertalb\cellx6808\clvertalb\cellx7034\clvertalb\cellx7850\clvertalb\cellx8130\clvertalb\cellx8352\clvertalb\cellx9163\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql U.S. Treasury securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 38,996\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 38,996\cell{
{\trowd\trqc\clvertalb\cellx4164\clvertalb\cellx4390\clvertalb\cellx5206\clvertalb\cellx5486\clvertalb\cellx5712\clvertalb\cellx6528\clvertalb\cellx6808\clvertalb\cellx7034\clvertalb\cellx7850\clvertalb\cellx8130\clvertalb\cellx8352\clvertalb\cellx9163\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4390\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5206\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5486\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5712\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6528\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6808\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7034\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7850\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8130\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8352\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9163\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Corporate debt securities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 42,636\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 42,636\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4390\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5206\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5486\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5712\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6528\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6808\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7034\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7850\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8130\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8352\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9163\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4164\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4390\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5206\clvertalb\cellx5486\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5712\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6528\clvertalb\cellx6808\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7034\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7850\clvertalb\cellx8130\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8352\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9163\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 62,017\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 42,636\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 104,653\cell{
{\trowd\trqc\clvertalb\cellx4164\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4390\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5206\clvertalb\cellx5486\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5712\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6528\clvertalb\cellx6808\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7034\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7850\clvertalb\cellx8130\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8352\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9163\trrh248\row}}}\pard\plain\fi792\cf1\f51\fs2\ql \~\par\pard\plain\fi792\cf1\f51\fs20\ql \~
\par\pard\plain
{\trowd\trqc\clvertalb\cellx4164\clvertalb\cellx4390\clvertalb\cellx5206\clvertalb\cellx5486\clvertalb\cellx5712\clvertalb\cellx6528\clvertalb\cellx6808\clvertalb\cellx7034\clvertalb\cellx7850\clvertalb\cellx8130\clvertalb\cellx8352\clvertalb\cellx9163\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx4164\clvertalb\cellx4390\clvertalb\cellx5206\clvertalb\cellx5486\clvertalb\cellx5712\clvertalb\cellx6528\clvertalb\cellx6808\clvertalb\cellx7034\clvertalb\cellx7850\clvertalb\cellx8130\clvertalb\cellx8352\clvertalb\cellx9163\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9163\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc As of December\~31,\~2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9163\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5207\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5487\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6530\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6810\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7853\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8133\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9162\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level 1\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level 2\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Level 3\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Total\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5207\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5487\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6530\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6810\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7853\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8133\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9162\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4164\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4390\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5206\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5486\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5712\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6528\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6808\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7034\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7850\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8130\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8352\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9163\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Cash and money market funds\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 30,411\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 30,411\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4164\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4390\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5206\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5486\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5712\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6528\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6808\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7034\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7850\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8130\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8352\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9163\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4164\clvertalb\cellx4390\clvertalb\cellx5206\clvertalb\cellx5486\clvertalb\cellx5712\clvertalb\cellx6528\clvertalb\cellx6808\clvertalb\cellx7034\clvertalb\cellx7850\clvertalb\cellx8130\clvertalb\cellx8352\clvertalb\cellx9163\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql U.S. Treasury securities\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 42,184\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 42,184\cell{
{\trowd\trqc\clvertalb\cellx4164\clvertalb\cellx4390\clvertalb\cellx5206\clvertalb\cellx5486\clvertalb\cellx5712\clvertalb\cellx6528\clvertalb\cellx6808\clvertalb\cellx7034\clvertalb\cellx7850\clvertalb\cellx8130\clvertalb\cellx8352\clvertalb\cellx9163\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4390\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5206\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5486\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5712\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6528\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6808\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7034\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7850\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8130\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8352\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9163\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Corporate debt securities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 38,654\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 38,654\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4164\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4390\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5206\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5486\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5712\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6528\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6808\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7034\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7850\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8130\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8352\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9163\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4164\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4390\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5206\clvertalb\cellx5486\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5712\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6528\clvertalb\cellx6808\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7034\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7850\clvertalb\cellx8130\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8352\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9163\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 72,595\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 38,654\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 111,249\cell{
{\trowd\trqc\clvertalb\cellx4164\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4390\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5206\clvertalb\cellx5486\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5712\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6528\clvertalb\cellx6808\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7034\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7850\clvertalb\cellx8130\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8352\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9163\trrh248\row}}}\pard\plain\fi792\cf1\f51\fs2\ql \~\par\pard\plain\fi792\cf1\f51\fs2\ql \~\par\pard\plain\fi792\cf1\f51\fs2\ql \~\par\pard\plain\fi792\cf1\f51\fs2\ql \~\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\fi792\cf1\f51\fs20\ql \~\par\pard\plain\fi792\cf1\f51\fs2\ql \~\par\pard\plain\fi792\cf1\f51\fs2\ql \~\par\pard\plain\fi792\cf1\f51\fs2\ql \~{\*\bkmkstart _hlk486514011_12866592}{\*\bkmkend _hlk486514011_12866592}\par\pard\plain\sb396\cf1\f51\fs22\b\ql 5.{\*\bkmkstart _hlk5371501_12866592}{\*\bkmkend _hlk5371501_12866592}\plain\sa132\cf1\f51\fs22\b\ql ACCOUNTS RECEIVABLE\par\pard\plain\fi792\cf1\f51\fs20\ql Accounts receivable consist of the following (in thousands):
\par\pard\plain
{\trowd\trqc\clvertalb\cellx5037\clvertalb\cellx5448\clvertalb\cellx6569\clvertalb\cellx6813\clvertalb\cellx7339\clvertalb\cellx8309\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx5037\clvertalb\cellx5448\clvertalb\cellx6569\clvertalb\cellx6813\clvertalb\cellx7339\clvertalb\cellx8309\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5037\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8309\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Balance\~as\~of\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5037\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8309\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5037\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6569\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6813\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8307\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5037\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6569\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6813\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8307\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5037\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6569\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6813\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8307\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5037\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6569\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6813\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8307\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5448\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6569\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6813\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7339\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8309\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Qsymia\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 14,231\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 13,987\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5448\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6569\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6813\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7339\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8309\trrh272\row}}}
{\trowd\trqc\clvertalb\cellx5037\clvertalb\cellx5448\clvertalb\cellx6569\clvertalb\cellx6813\clvertalb\cellx7339\clvertalb\cellx8309\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql PANCREAZE\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 7,637\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10,213\cell{
{\trowd\trqc\clvertalb\cellx5037\clvertalb\cellx5448\clvertalb\cellx6569\clvertalb\cellx6813\clvertalb\cellx7339\clvertalb\cellx8309\trrh272\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5448\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6569\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6813\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7339\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8309\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql STENDRA/SPEDRA\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 2,967\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,560\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5448\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6569\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6813\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7339\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8309\trrh272\row}}}
{\trowd\trqc\clvertalb\cellx5037\clvertalb\cellx5448\clvertalb\cellx6569\clvertalb\cellx6813\clvertalb\cellx7339\clvertalb\cellx8309\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 24,835\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 25,760\cell{
{\trowd\trqc\clvertalb\cellx5037\clvertalb\cellx5448\clvertalb\cellx6569\clvertalb\cellx6813\clvertalb\cellx7339\clvertalb\cellx8309\trrh272\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5448\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6569\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6813\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7339\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8309\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Allowance for cash discounts\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (281)\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (152)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5448\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6569\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6813\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7339\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8309\trrh272\row}}}
{\trowd\trqc\clvertalb\cellx5037\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5448\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6569\clvertalb\cellx6813\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7339\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8309\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Net\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 24,554\cell\pard\plain\intbl\cf1\f51\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 25,608\cell{
{\trowd\trqc\clvertalb\cellx5037\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5448\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6569\clvertalb\cellx6813\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7339\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8309\trrh272\row}}}\pard\plain\cf1\f51\fs2\ql \~\par\pard\plain\sb396\sa132\fi792\cf1\f51\fs16\ql \~\par\pard\plain\cf1\f51\fs20\qc 12\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}{\*\bkmkstart _hlk486514071_12866592}{\*\bkmkend _hlk486514071_12866592}\par\pard\plain\cf1\f51\fs22\b\ql 6.{\*\bkmkstart _hlk5371524_12866592}{\*\bkmkend _hlk5371524_12866592}\plain\sa132\cf1\f51\fs22\b\ql INVENTORIES\par\pard\plain\fi792\cf1\f51\fs20\ql Inventories consist of the following (in thousands):
\par\pard\plain
{\trowd\trqc\clvertalb\cellx4204\clvertalb\cellx4615\clvertalb\cellx5562\clvertalb\cellx5802\clvertalb\cellx6328\clvertalb\cellx7276\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx4204\clvertalb\cellx4615\clvertalb\cellx5562\clvertalb\cellx5802\clvertalb\cellx6328\clvertalb\cellx7276\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4204\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7276\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Balance\~as\~of\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4204\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7276\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4204\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5562\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5802\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7275\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4204\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5562\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5802\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7275\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4204\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5562\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5802\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7275\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4204\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5562\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5802\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7275\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4204\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4615\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5562\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5802\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6328\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7276\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Raw materials\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 16,576\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 17,813\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4204\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4615\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5562\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5802\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6328\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7276\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4204\clvertalb\cellx4615\clvertalb\cellx5562\clvertalb\cellx5802\clvertalb\cellx6328\clvertalb\cellx7276\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Work-in-process\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,895\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,719\cell{
{\trowd\trqc\clvertalb\cellx4204\clvertalb\cellx4615\clvertalb\cellx5562\clvertalb\cellx5802\clvertalb\cellx6328\clvertalb\cellx7276\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4204\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4615\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5562\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5802\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6328\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7276\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Finished goods\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,475\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,600\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4204\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4615\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5562\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5802\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6328\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7276\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4204\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4615\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5562\clvertalb\cellx5802\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6328\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7276\trrh264
\pard\plain\intbl\li264\cf1\f51\fs20\ql Inventories, net\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 21,946\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 23,132\cell{
{\trowd\trqc\clvertalb\cellx4204\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4615\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5562\clvertalb\cellx5802\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6328\clbrdrt\brdrs\brdrcf1\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7276\trrh264\row}}}\pard\plain\sb132\fi792\cf1\f51\fs20\ql Raw materials inventories consist primarily of the active pharmaceutical ingredients (\u8220?API\u8221?)\plain\cf1\f51\fs20\ql for Qsymia and STENDRA/SPEDRA. Work-in-process and finished goods inventory consist of Qsymia,\plain\cf1\f51\fs20\ql STENDRA/SPEDRA and PANCREAZE inventory. Inventories are stated at the lower of cost or net realizable\plain\cf1\f51\fs20\ql value. Cost is determined using the first in, first out method for all inventories, which are valued using a\plain\cf1\f51\fs20\ql weighted-average cost method calculated for each production batch. The Company periodically evaluates the\plain\cf1\f51\fs20\ql carrying value of inventory on hand for potential excess amounts over demand using the same lower of cost or\plain\sa132\cf1\f51\fs20\ql net realizable value approach as that used to value the inventory.\par\pard\plain\sb396\cf1\f51\fs22\b\ql 7.{\*\bkmkstart _hlk486514157_12866592}{\*\bkmkend _hlk486514157_12866592}{\*\bkmkstart _hlk5371573_12866592}{\*\bkmkend _hlk5371573_12866592}\plain\sa132\cf1\f51\fs22\b\ql PREPAID EXPENSES AND OTHER CURRENT ASSETS\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql Prepaid expenses and other current assets consist of the following (in thousands):
\par\pard\plain
{\trowd\trqc\clvertalb\cellx4921\clvertalb\cellx5332\clvertalb\cellx6205\clvertalb\cellx6400\clvertalb\cellx6926\clvertalb\cellx7735\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx4921\clvertalb\cellx5332\clvertalb\cellx6205\clvertalb\cellx6400\clvertalb\cellx6926\clvertalb\cellx7735\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4921\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7735\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Balance\~as\~of\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4921\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7735\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4921\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6205\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6400\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7733\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4921\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6205\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6400\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7733\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4921\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6205\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6400\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7733\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4921\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6205\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6400\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7733\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4921\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5332\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6205\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6400\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6926\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Prepaid sales and marketing expenses\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,874\cell\pard\plain\intbl\cf1\f62\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,525\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4921\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5332\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6205\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6400\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6926\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4921\clvertalb\cellx5332\clvertalb\cellx6205\clvertalb\cellx6400\clvertalb\cellx6926\clvertalb\cellx7735\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Prepaid insurance\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 992\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,451\cell{
{\trowd\trqc\clvertalb\cellx4921\clvertalb\cellx5332\clvertalb\cellx6205\clvertalb\cellx6400\clvertalb\cellx6926\clvertalb\cellx7735\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4921\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5332\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6205\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6400\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6926\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Taxes receivable\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 770\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 779\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4921\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5332\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6205\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6400\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6926\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4921\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5332\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6205\clvertalb\cellx6400\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6926\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7735\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Other prepaid expenses and assets\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 2,932\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,783\cell{
{\trowd\trqc\clvertalb\cellx4921\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5332\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6205\clvertalb\cellx6400\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6926\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7735\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4921\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5332\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6205\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6400\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6926\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 6,568\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 7,538\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4921\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5332\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6205\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6400\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6926\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\trrh248\row}}}\pard\plain\cf1\f51\fs2\ql \~\par\pard\plain\sb132\fi792\cf1\f51\fs20\ql These costs have been deferred as prepaid expenses and other current assets on the condensed\plain\cf1\f51\fs20\ql consolidated balance sheets and will be either (i) charged to expense accordingly when the related prepaid services\plain\cf1\f51\fs20\ql are rendered to the Company, or (ii) converted to cash when the receivable is collected by the Company. The\plain\cf1\f51\fs20\ql amounts included in other prepaid expenses and assets consist primarily of prepayments for future services,\plain\sa132\cf1\f51\fs20\ql non-trade receivables, prepaid interest and interest income receivable.\par\pard\plain\sb132\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb396\cf1\f51\fs22\b\ql 8.{\*\bkmkstart _hlk5371621_12866592}{\*\bkmkend _hlk5371621_12866592}\plain\sa132\cf1\f51\fs22\b\ql INTANGIBLE AND OTHER NON-CURRENT ASSETS\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql Intangible and other non-current assets consist of the following (in thousands):
\par\pard\plain
{\trowd\clvertalb\cellx2420\clvertalb\cellx2615\clvertalb\cellx3366\clvertalb\cellx3508\clvertalb\cellx4005\clvertalb\cellx4789\clvertalb\cellx4931\clvertalb\cellx5121\clvertalb\cellx5872\clvertalb\cellx6012\clvertalb\cellx6207\clvertalb\cellx6958\clvertalb\cellx7129\clvertalb\cellx7626\clvertalb\cellx8410\clvertalb\cellx8581\clvertalb\cellx8771\clvertalb\cellx9529\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\clvertalb\cellx2420\clvertalb\cellx2615\clvertalb\cellx3366\clvertalb\cellx3508\clvertalb\cellx4005\clvertalb\cellx4789\clvertalb\cellx4931\clvertalb\cellx5121\clvertalb\cellx5872\clvertalb\cellx6012\clvertalb\cellx6207\clvertalb\cellx6958\clvertalb\cellx7129\clvertalb\cellx7626\clvertalb\cellx8410\clvertalb\cellx8581\clvertalb\cellx8771\clvertalb\cellx9529\trrh66\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2420\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5875\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6015\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh272
\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~2019\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31,\~2018\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2420\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5875\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6015\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh272\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2420\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3366\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3508\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4790\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4932\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5873\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6013\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6959\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7130\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8412\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8583\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9524\trrh396
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Cost\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Accumulated\plain\intbl\cf1\f51\fs16\b\qc Amortization\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Net\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Cost\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Accumulated\plain\intbl\cf1\f51\fs16\b\qc Amortization\cell\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Net\cell{
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2420\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3366\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3508\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4790\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4932\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5873\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6013\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6959\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7130\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8412\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8583\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9524\trrh396\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2420\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2615\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3366\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3508\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4005\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4789\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4931\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5121\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5872\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6012\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6207\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6958\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7626\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8410\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8581\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8771\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql PANCREAZE license (1)\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 141,895\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (11,825)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 130,070\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 141,895\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (8,277)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 133,618\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2420\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2615\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3366\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3508\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4005\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4789\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4931\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5121\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5872\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6012\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6207\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6958\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7129\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7626\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8410\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8581\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8771\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx2420\clvertalb\cellx2615\clvertalb\cellx3366\clvertalb\cellx3508\clvertalb\cellx4005\clvertalb\cellx4789\clvertalb\cellx4931\clvertalb\cellx5121\clvertalb\cellx5872\clvertalb\cellx6012\clvertalb\cellx6207\clvertalb\cellx6958\clvertalb\cellx7129\clvertalb\cellx7626\clvertalb\cellx8410\clvertalb\cellx8581\clvertalb\cellx8771\clvertalb\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Janssen patents (2)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,050\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (2,687)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 363\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,050\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (2,597)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 453\cell{
{\trowd\clvertalb\cellx2420\clvertalb\cellx2615\clvertalb\cellx3366\clvertalb\cellx3508\clvertalb\cellx4005\clvertalb\cellx4789\clvertalb\cellx4931\clvertalb\cellx5121\clvertalb\cellx5872\clvertalb\cellx6012\clvertalb\cellx6207\clvertalb\cellx6958\clvertalb\cellx7129\clvertalb\cellx7626\clvertalb\cellx8410\clvertalb\cellx8581\clvertalb\cellx8771\clvertalb\cellx9529\trrh248\row}}}
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2420\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2615\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3366\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3508\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4005\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4789\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4931\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5121\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5872\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6012\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6207\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6958\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7626\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8410\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8581\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8771\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Other non-current assets\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 208\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 208\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 208\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 208\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2420\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2615\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3366\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3508\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4005\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4789\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4931\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5121\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5872\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6012\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6207\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6958\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7129\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7626\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8410\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8581\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8771\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\clvertalb\cellx2420\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2615\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3366\clvertalb\cellx3508\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4005\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4789\clvertalb\cellx4931\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5121\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5872\clvertalb\cellx6012\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6207\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6958\clvertalb\cellx7129\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7626\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8410\clvertalb\cellx8581\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8771\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 145,153\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (14,512)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 130,641\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 145,153\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (10,874)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 134,279\cell{
{\trowd\clvertalb\cellx2420\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx2615\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3366\clvertalb\cellx3508\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4005\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4789\clvertalb\cellx4931\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5121\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5872\clvertalb\cellx6012\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6207\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6958\clvertalb\cellx7129\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7626\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8410\clvertalb\cellx8581\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx8771\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx9529\trrh248\row}}}\pard\plain\sa132\cf1\f51\fs16\b\ql _________________
\par\pard\plain
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9529\trrh1148
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb264\sa132\cf1\f51\fs20\ql (1)\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb264\cf1\f51\fs20\ql In June 2018, the Company acquired the rights to license PANCREAZE in the U.S. and Canada, as\plain\intbl\cf1\f51\fs20\ql described further in Note 13. The rights are being amortized over their estimated useful life of 10 years\plain\intbl\sa132\cf1\f51\fs20\ql using the straight-line method.\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9529\trrh1148\row}}}\pard\plain\cf1\f51\fs20\qc 13\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}
\par\pard\plain
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9529\trrh1148
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb264\sa132\cf1\f51\fs20\ql (2)\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb264\cf1\f51\fs20\ql In September 2014, the Company acquired certain patents relating to Qsymia from Janssen\plain\intbl\cf1\f51\fs20\ql Pharmaceuticals, approximately $3.1 million of which was recorded as an intangible asset. The patents\plain\intbl\sa132\cf1\f51\fs20\ql are being amortized over their estimated useful life of 5.5 years using the straight-line method.\~\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9529\trrh1148\row}}}\pard\plain\sb264\fi792\cf1\f51\fs20\ql Other non-current assets primarily consist of real estate deposits. Amortization of intangible assets was\plain\cf1\f51\fs20\ql $3.6 million and $91,000 for the three months ended March 31, 2019 and 2018, respectively. Future expected\plain\sa132\cf1\f51\fs20\ql amortization expenses for intangible assets as of March 31, 2019 are as follows (in thousands):
\par\pard\plain
{\trowd\trqc\clvertalb\cellx3232\clvertalb\cellx3422\clvertalb\cellx4171\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx3232\clvertalb\cellx3422\clvertalb\cellx4171\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3232\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3422\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4171\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql 2019 (rest of year)\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10,916\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3232\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3422\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4171\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3232\clvertalb\cellx3422\clvertalb\cellx4171\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql 2020\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 14,280\cell{
{\trowd\trqc\clvertalb\cellx3232\clvertalb\cellx3422\clvertalb\cellx4171\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3232\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3422\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4171\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql 2021\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 14,189\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3232\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3422\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4171\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3232\clvertalb\cellx3422\clvertalb\cellx4171\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql 2022\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 14,189\cell{
{\trowd\trqc\clvertalb\cellx3232\clvertalb\cellx3422\clvertalb\cellx4171\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3232\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3422\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4171\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql 2023\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 14,189\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3232\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3422\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4171\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3232\clvertalb\cellx3422\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4171\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Thereafter\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 62,670\cell{
{\trowd\trqc\clvertalb\cellx3232\clvertalb\cellx3422\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4171\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3232\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3422\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4171\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 130,433\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3232\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3422\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4171\trrh248\row}}}\pard\plain\fi792\cf1\f51\fs2\ql \~\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb396\cf1\f51\fs22\b\ql 9.{\*\bkmkstart _hlk486514231_12866592}{\*\bkmkend _hlk486514231_12866592}\plain\sa132\cf1\f51\fs22\b\ql ACCRUED AND OTHER LIABILITIES\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql Accrued and other liabilities consist of the following (in thousands):
\par\pard\plain
{\trowd\trqc\clvertalb\cellx4417\clvertalb\cellx4828\clvertalb\cellx5795\clvertalb\cellx5990\clvertalb\cellx6516\clvertalb\cellx7387\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx4417\clvertalb\cellx4828\clvertalb\cellx5795\clvertalb\cellx5990\clvertalb\cellx6516\clvertalb\cellx7387\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4417\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7386\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Balance\~as\~of\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4417\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7386\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4417\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5795\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5990\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7385\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4417\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5795\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5990\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7385\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4417\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5795\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5990\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7385\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4417\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5795\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5990\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7385\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4417\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4828\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5795\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5990\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6516\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7387\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Reserve for product returns (see Note 2)\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 13,655\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 14,878\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4417\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4828\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5795\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5990\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6516\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7387\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4417\clvertalb\cellx4828\clvertalb\cellx5795\clvertalb\cellx5990\clvertalb\cellx6516\clvertalb\cellx7387\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Product-related accruals (see Note 2)\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 7,979\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 8,272\cell{
{\trowd\trqc\clvertalb\cellx4417\clvertalb\cellx4828\clvertalb\cellx5795\clvertalb\cellx5990\clvertalb\cellx6516\clvertalb\cellx7387\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4417\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4828\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5795\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5990\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6516\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7387\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Accrued manufacturing costs\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 4,502\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 4,313\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4417\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4828\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5795\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5990\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6516\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7387\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4417\clvertalb\cellx4828\clvertalb\cellx5795\clvertalb\cellx5990\clvertalb\cellx6516\clvertalb\cellx7387\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Accrued interest on debt (see Note\~14)\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 2,327\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell{
{\trowd\trqc\clvertalb\cellx4417\clvertalb\cellx4828\clvertalb\cellx5795\clvertalb\cellx5990\clvertalb\cellx6516\clvertalb\cellx7387\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4417\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4828\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5795\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5990\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6516\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7387\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Accrued employee compensation and benefits\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,085\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 2,591\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4417\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4828\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5795\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5990\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6516\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7387\trrh272\row}}}
{\trowd\trqc\clvertalb\cellx4417\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4828\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5795\clvertalb\cellx5990\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6516\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7387\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Other accrued liabilities\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,843\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 2,990\cell{
{\trowd\trqc\clvertalb\cellx4417\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4828\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5795\clvertalb\cellx5990\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6516\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7387\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4417\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4828\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5795\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5990\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6516\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7387\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 33,391\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 33,044\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4417\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4828\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5795\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5990\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6516\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7387\trrh248\row}}}\pard\plain\sb132\fi792\cf1\f51\fs20\ql The amounts included in other accrued liabilities consist of obligations primarily related to sales,\plain\sa132\cf1\f51\fs20\ql marketing, research, clinical development, corporate activities, the STENDRA license and royalties.\par\pard\plain\sb132\sa132\fi792\cf1\f51\fs24\ql \~\par\pard\plain\sb396\sa132\cf1\f51\fs22\b\ql 10. NON-CURRENT ACCRUED AND OTHER LIABILITIES\par\pard\plain\fi792\cf1\f51\fs20\ql Non-current accrued and other liabilities at December 31, 2018 were comprised of deferred rent. See\plain\sa132\cf1\f51\fs20\ql Note 12.\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb132\fi792\cf1\f51\fs2\ql \~\par\pard\plain\fi792\cf1\f51\fs2\ql \~\par\pard\plain\sb396\cf1\f51\fs22\b\ql 11.{\*\bkmkstart _hlk486514321_12866592}{\*\bkmkend _hlk486514321_12866592}\plain\sa132\cf1\f51\fs22\b\ql DEFERRED REVENUE\par\pard\plain\sb132\fi792\cf1\f51\fs20\ql Deferred revenue relates to a prepayment for future royalties on sales of SPEDRA. In the three months\plain\cf1\f51\fs20\ql ended March 31, 2019 and 2018, the Company recorded $0.3 million and $0.3 million, respectively, of revenues\plain\cf1\f51\fs20\ql which had been deferred as of December 31, 2018 and 2017, respectively. These amounts were applied against\plain\sa132\cf1\f51\fs20\ql the prepayment for future royalties.\par\pard\plain\sb132\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb132\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\qc 14\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb132\sa132\cf1\f51\fs22\b\ql 12. LEASES\par\pard\plain\sb132\fi792\cf1\f51\fs20\ql The Company adopted Accounting Standards Update 2016-02, Leases (Topic 842) on January 1, 2019\plain\cf1\f51\fs20\ql using the modified retrospective transition method, and as a result did not adjust comparative periods. The\plain\cf1\f51\fs20\ql Company\u8217?s only significant lease is its operating lease for its corporate headquarters, although it has\plain\cf1\f51\fs20\ql several smaller leases, including financing leases for its automobile fleet and copiers. At the time of adoption, the\plain\sa132\cf1\f51\fs20\ql Company recorded the following amounts (in thousands):
\par\pard\plain
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\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\clvertalb\cellx1403\clvertalb\cellx1916\clvertalb\cellx2679\clvertalb\cellx2854\clvertalb\cellx3187\clvertalb\cellx3972\clvertalb\cellx4120\clvertalb\cellx4473\clvertalb\cellx5303\clvertalb\cellx5451\clvertalb\cellx5797\clvertalb\cellx6699\clvertalb\cellx6847\clvertalb\cellx7193\clvertalb\cellx8095\clvertalb\cellx8243\clvertalb\cellx8736\clvertalb\cellx9529\trrh66\row}}}
{\trowd\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1403\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2679\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2854\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3973\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4121\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5304\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5452\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6701\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6849\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8098\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8246\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9523\trrh594
\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Right-of-Use\plain\intbl\cf1\f51\fs16\b\qc Asset\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Current\plain\intbl\cf1\f51\fs16\b\qc Portion of\plain\intbl\cf1\f51\fs16\b\qc Lease Liability\cell\pard\plain\intbl\cf1\f62\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Lease Liability,\plain\intbl\cf1\f51\fs16\b\qc Net of Current\plain\intbl\cf1\f51\fs16\b\qc Portion\cell\pard\plain\intbl\cf1\f62\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Current Portion\plain\intbl\cf1\f51\fs16\b\qc of Deferred Rent\cell\pard\plain\intbl\cf1\f62\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Deferred Rent,\plain\intbl\cf1\f51\fs16\b\qc Net of Current\plain\intbl\cf1\f51\fs16\b\qc Portion\cell\pard\plain\intbl\cf1\f62\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Accumulated\plain\intbl\cf1\f51\fs16\b\qc Deficit\cell{
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{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1403\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1916\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2679\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2854\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3187\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3972\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4120\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5303\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5451\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5797\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6699\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6847\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7193\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8243\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8736\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Operating leases\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,201\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 512\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,017\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\cf1\f51\fs20\qr (94)\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\cf1\f51\fs20\qr (234)\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1403\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1916\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2679\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2854\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3187\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3972\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4120\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4473\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5303\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5451\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5797\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6699\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6847\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7193\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8243\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8736\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh272\row}}}
{\trowd\clvertalb\cellx1403\clbrdrb\brdrs\brdrcf1\clvertalb\cellx1916\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2679\clvertalb\cellx2854\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3187\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3972\clvertalb\cellx4120\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4473\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5303\clvertalb\cellx5451\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5797\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6699\clvertalb\cellx6847\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7193\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8095\clvertalb\cellx8243\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8736\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9529\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Financing leases\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 329\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 131\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 188\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10\cell{
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{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1403\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1916\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2679\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2854\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3187\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3972\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4120\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4473\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5303\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5451\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5797\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6699\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6847\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7193\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8243\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8736\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,530\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 643\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,205\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\cf1\f51\fs20\qr (94)\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\cf1\f51\fs20\qr (234)\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~10\cell{
{\trowd\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1403\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1916\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2679\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2854\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3187\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3972\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4120\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4473\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5303\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5451\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5797\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6699\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6847\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7193\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8095\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8243\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8736\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh272\row}}}\pard\plain\sb132\sa132\cf1\f51\fs20\ql \~\par\pard\plain\sb132\fi792\cf1\f51\fs20\ql The Company\u8217?s leases have remaining lease terms of from less than 1 year to 2\u189? years, some\plain\sa132\cf1\f51\fs20\ql of which include options to extend the leases for up to 2 years.\par\pard\plain\sb132\sa132\fi792\cf1\f51\fs20\ql The components of lease expense were as follows (in thousands):
\par\pard\plain
{\trowd\trqc\clvertalb\cellx4618\clvertalb\cellx5037\clvertalb\cellx6230\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx4618\clvertalb\cellx5037\clvertalb\cellx6230\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6229\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6229\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6229\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4618\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6229\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4618\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6229\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4618\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6229\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4618\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6230\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Operating lease cost\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 130\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4618\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6230\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4618\clvertalb\cellx5037\clvertalb\cellx6230\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell{
{\trowd\trqc\clvertalb\cellx4618\clvertalb\cellx5037\clvertalb\cellx6230\trrh272\row}}}
{\trowd\trqc\clvertalb\cellx4618\clvertalb\cellx5037\clvertalb\cellx6230\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Finance lease cost:\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell{
{\trowd\trqc\clvertalb\cellx4618\clvertalb\cellx5037\clvertalb\cellx6230\trrh272\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4618\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6230\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\~Amortization of right-of-use assets\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 53\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4618\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6230\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4618\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5037\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6230\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\~Interest on lease liabilities\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~3\cell{
{\trowd\trqc\clvertalb\cellx4618\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5037\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6230\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4618\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6230\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Total finance lease cost\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 56\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4618\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5037\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6230\trrh248\row}}}\pard\plain\sb132\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb132\sa132\fi792\cf1\f51\fs20\ql Supplemental balance sheet information related to leases was as follows:
\par\pard\plain
{\trowd\trqc\clvertalb\cellx6397\clvertalb\cellx6885\clvertalb\cellx7880\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx6397\clvertalb\cellx6885\clvertalb\cellx7880\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6397\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7879\trrh198
\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Balance\~as\~of\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6397\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7879\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6397\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7879\trrh198
\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6397\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7879\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6397\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7879\trrh198
\pard\plain\intbl\cf1\f62\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6397\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7879\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6397\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6885\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7880\trrh289
\pard\plain\intbl\cf1\f51\fs20\ql Right-of-use assets:\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6397\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6885\clbrdrt\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7880\trrh289\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Operating leases\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,099\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6397\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6885\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7880\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Financing leases\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 397\cell{
{\trowd\trqc\clvertalb\cellx6397\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6885\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7880\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Total right-of-use assets\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,496\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6397\clvertalb\cellx6885\clvertalb\cellx7880\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell{
{\trowd\trqc\clvertalb\cellx6397\clvertalb\cellx6885\clvertalb\cellx7880\trrh272\row}}}
{\trowd\trqc\clvertalb\cellx6397\clvertalb\cellx6885\clvertalb\cellx7880\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Current portion of lease liability:\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell{
{\trowd\trqc\clvertalb\cellx6397\clvertalb\cellx6885\clvertalb\cellx7880\trrh272\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Operating leases\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 528\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6397\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6885\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7880\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Financing leases\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 177\cell{
{\trowd\trqc\clvertalb\cellx6397\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6885\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7880\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Total current portion of lease liability\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 705\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6397\clvertalb\cellx6885\clvertalb\cellx7880\trrh272
\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell{
{\trowd\trqc\clvertalb\cellx6397\clvertalb\cellx6885\clvertalb\cellx7880\trrh272\row}}}
{\trowd\trqc\clvertalb\cellx6397\clvertalb\cellx6885\clvertalb\cellx7880\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Lease liability, net of current portion\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell{
{\trowd\trqc\clvertalb\cellx6397\clvertalb\cellx6885\clvertalb\cellx7880\trrh272\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Operating leases\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 880\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx6397\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6885\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7880\trrh248
\pard\plain\intbl\li396\cf1\f51\fs20\ql Financing leases\cell\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 211\cell{
{\trowd\trqc\clvertalb\cellx6397\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6885\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7880\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Total lease liability, net of current portion\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,091\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6397\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6885\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7880\trrh248\row}}}\pard\plain\sb132\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb132\fi792\cf1\f51\fs20\ql The weighted average remaining lease term as of March 31, 2019 was 2.4 years for operating leases and\plain\cf1\f51\fs20\ql 2.1 years for financing leases. The weighted average discount rate as of March 31, 2019 was 7.8% for operating\plain\sa132\cf1\f51\fs20\ql leases and 2.8% for financing leases.\par\pard\plain\cf1\f51\fs20\qc 15\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb132\sa132\fi792\cf1\f51\fs20\ql Future payments of lease liabilities are as follows:
\par\pard\plain
{\trowd\trqc\clvertalb\cellx2691\clvertalb\cellx3082\clvertalb\cellx4119\clvertalb\cellx4307\clvertalb\cellx4618\clvertalb\cellx5406\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx2691\clvertalb\cellx3082\clvertalb\cellx4119\clvertalb\cellx4307\clvertalb\cellx4618\clvertalb\cellx5406\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2691\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4119\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4307\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5405\trrh272
\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Operating Leases\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Finance Leases\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2691\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4119\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4307\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5405\trrh272\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2691\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3082\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4119\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4307\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4618\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5406\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql 2019 (rest of year)\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 464\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 142\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2691\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3082\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4119\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4307\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4618\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5406\trrh272\row}}}
{\trowd\trqc\clvertalb\cellx2691\clvertalb\cellx3082\clvertalb\cellx4119\clvertalb\cellx4307\clvertalb\cellx4618\clvertalb\cellx5406\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql 2020\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 610\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 175\cell{
{\trowd\trqc\clvertalb\cellx2691\clvertalb\cellx3082\clvertalb\cellx4119\clvertalb\cellx4307\clvertalb\cellx4618\clvertalb\cellx5406\trrh272\row}}}
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\pard\plain\intbl\cf1\f51\fs20\ql 2021\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 482\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 75\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2691\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3082\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4119\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4307\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4618\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5406\trrh272\row}}}
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\pard\plain\intbl\cf1\f51\fs20\ql Total lease payments\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,556\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 392\cell{
{\trowd\trqc\clvertalb\cellx2691\clvertalb\cellx3082\clvertalb\cellx4119\clvertalb\cellx4307\clvertalb\cellx4618\clvertalb\cellx5406\trrh272\row}}}
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\pard\plain\intbl\cf1\f51\fs20\ql Less imputed interest\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (148)\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (4)\cell{
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\pard\plain\intbl\li264\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,408\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 388\cell{
{\trowd\trqc\clvertalb\cellx2691\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx3082\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4119\clvertalb\cellx4307\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4618\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5406\trrh272\row}}}\pard\plain\fi792\cf1\f51\fs2\ql \~\par\pard\plain\sb132\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb396\sa132\cf1\f51\fs22\b\ql 13. LICENSE, COMMERCIALIZATION AND SUPPLY AGREEMENTS\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql MTPC\par\pard\plain\fi792\cf1\f51\fs20\ql In January 2001, the Company entered into an exclusive development, license and clinical trial and\plain\cf1\f51\fs20\ql commercial supply agreement with Tanabe Seiyaku Co., Ltd., now Mitsubishi Tanabe Pharma Corporation\plain\cf1\f51\fs20\ql (\u8220?MTPC\u8221?), for the development and commercialization of avanafil. Under the terms of the\plain\cf1\f51\fs20\ql agreement, MTPC agreed to grant an exclusive license to the Company for products containing avanafil outside of\plain\cf1\f51\fs20\ql Japan, North Korea, South Korea, China, Taiwan, Singapore, Indonesia, Malaysia, Thailand, Vietnam and the\plain\cf1\f51\fs20\ql Philippines. The Company agreed to grant MTPC an exclusive, royalty free license within those countries for oral\plain\cf1\f51\fs20\ql products that we develop containing avanafil. The MTPC agreement contains a number of milestone payments to\plain\cf1\f51\fs20\ql be made by us based on various triggering events. The term of the MTPC agreement is based on a country by\plain\cf1\f51\fs20\ql country and on a product by product basis. In August 2012, the Company entered into an amendment to the\plain\cf1\f51\fs20\ql agreement with MTPC that permitted the Company to manufacture the API and tablets for STENDRA/SPEDRA\plain\cf1\f51\fs20\ql by itself or through third parties. In 2015, the Company transferred the manufacturing of the API and tablets for\plain\cf1\f51\fs20\ql STENDRA/SPEDRA to Sanofi. The Company maintains royalty obligations to MTPC which have been passed\plain\sa132\cf1\f51\fs20\ql through to our commercialization partners.\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Menarini\par\pard\plain\fi792\cf1\f51\fs20\ql In July 2013, the Company entered into a license and commercialization agreement (the \u8220?Menarini\plain\cf1\f51\fs20\ql License Agreement\u8221?) and a supply agreement (the \u8220?Menarini Supply Agreement\u8221?) with the\plain\cf1\f51\fs20\ql Menarini Group through its subsidiary Berlin Chemie AG (\u8220?Menarini\u8221?). Under the terms of the\plain\cf1\f51\fs20\ql Menarini License Agreement, Menarini received an exclusive license to commercialize and promote SPEDRA for\plain\cf1\f51\fs20\ql the treatment of ED in over 40 countries, including the EU Member States, plus Australia and New Zealand.\plain\cf1\f51\fs20\ql Additionally, the Company transferred to Menarini ownership of the marketing authorization for SPEDRA in the\plain\cf1\f51\fs20\ql EU for the treatment of ED, which was granted by the EC in June 2013. Under the Menarini License Agreement,\plain\cf1\f51\fs20\ql the Company has and is entitled to receive milestone payments based on certain net sales targets, plus royalties on\plain\cf1\f51\fs20\ql SPEDRA sales. Under the terms of the Menarini Supply Agreement, the Company supplied Menarini with\plain\cf1\f51\fs20\ql SPEDRA drug product until December 31, 2018. Menarini also has the right to manufacture SPEDRA\plain\cf1\f51\fs20\ql independently, provided that it continues to satisfy certain minimum purchase obligations to the Company.\plain\cf1\f51\fs20\ql Following the expiration of the Menarini Supply Agreement, Menarini is responsible for its own supply of\plain\cf1\f51\fs20\ql SPEDRA. Either party may terminate the Menarini Supply Agreement for the other party\u8217?s uncured\plain\sa132\cf1\f51\fs20\ql material breach or bankruptcy, or upon the termination of the Menarini License Agreement.\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Sanofi\par\pard\plain\fi792\cf1\f51\fs20\ql In December 2013, the Company entered into a license and commercialization agreement (the\plain\cf1\f51\fs20\ql \u8220?Sanofi License Agreement\u8221?) with Sanofi. Under the terms of the Sanofi License Agreement, Sanofi\plain\cf1\f51\fs20\ql received an exclusive license to commercialize and promote avanafil for therapeutic use in humans in Africa, the\plain\cf1\f51\fs20\ql Middle East\u8212?Turkey and Commonwealth of Independent States, including Russia (the \u8220?Sanofi\plain\sa132\cf1\f51\fs20\ql Territory\u8221?).\par\pard\plain\fi792\cf1\f51\fs20\ql In July 2013, the Company entered into a Commercial Supply Agreement with Sanofi Chimie to\plain\cf1\f51\fs20\ql manufacture and supply the API for avanafil on an exclusive basis in the United States and other territories and\plain\sa132\cf1\f51\fs20\ql on a semi-exclusive basis in Europe, including the EU Member States, Latin America and other territories.\par\pard\plain\cf1\f51\fs20\qc 16\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\fi792\cf1\f51\fs20\ql On December 7, 2018, the Company entered into an amendment to the Commercial Supply Agreement\plain\cf1\f51\fs20\ql with Sanofi Chimie, pursuant to which certain amendments were made to the Commercial Supply Agreement,\plain\cf1\f51\fs20\ql which include: (i) beginning January 1, 2019, Sanofi Chimie will manufacture and supply API for avanafil on an\plain\cf1\f51\fs20\ql exclusive basis in all countries where the Company has the right to sell avanafil; (ii) beginning January 1, 2019,\plain\cf1\f51\fs20\ql the yearly minimum quantities of API that the Company must purchase from Sanofi Chimie will be adjusted, as\plain\cf1\f51\fs20\ql well as adjustments to the associated pricing and payment terms; and (iii) with the initial five year term of the\plain\cf1\f51\fs20\ql Commercial Supply Agreement expiring on December 31, 2018, the Company and Sanofi Chimie have agreed to\plain\cf1\f51\fs20\ql extend the term of the Commercial Supply Agreement until December 31, 2023 unless either party makes a timely\plain\cf1\f51\fs20\ql election to terminate the agreement and that thereafter the Commercial Supply Agreement will auto-renew for\plain\sa132\cf1\f51\fs20\ql successive one year terms unless either party makes a timely election not to renew.\par\pard\plain\fi792\cf1\f51\fs20\ql In November 2013, the Company entered into a Manufacturing and Supply Agreement with Sanofi\plain\cf1\f51\fs20\ql Winthrop Industrie to manufacture and supply the avanafil tablets on an exclusive basis in the United States and\plain\cf1\f51\fs20\ql other territories and on a semi exclusive basis in Europe, including the EU Member States, Latin America and\plain\cf1\f51\fs20\ql other territories. The Company has minimum annual purchase commitments under these agreements for at least\plain\sa132\cf1\f51\fs20\ql the initial five-year term.\par\pard\plain\fi792\cf1\f51\fs20\ql On March 23, 2017, the Company and Sanofi entered into the Termination, Rights Reversion and\plain\cf1\f51\fs20\ql Transition Services Agreement (the \u8220?Transition Agreement\u8221?) effective February 28, 2017. Under the\plain\cf1\f51\fs20\ql Transition Agreement, effective upon the thirtieth (30th) day following February 28, 2017, the Sanofi License\plain\cf1\f51\fs20\ql Agreement terminated for all countries in the Sanofi Territory. In addition, under the Transition Agreement,\plain\cf1\f51\fs20\ql Sanofi provides the Company with certain transition services in support of ongoing regulatory approval efforts\plain\cf1\f51\fs20\ql while the Company seeks to obtain a new commercial partner or partners for the Sanofi Territory. The Company\plain\sa132\cf1\f51\fs20\ql pays certain transition service fees to Sanofi as part of the Transition Agreement.\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Metuchen\par\pard\plain\fi792\cf1\f51\fs20\ql On September 30, 2016, the Company entered into a license and commercialization agreement (the\plain\cf1\f51\fs20\ql \u8220?Metuchen License Agreement\u8221?) and a commercial supply agreement (the \u8220?Metuchen Supply\plain\cf1\f51\fs20\ql Agreement\u8221?) with Metuchen Pharmaceuticals LLC (\u8220?Metuchen\u8221?). Under the terms of the\plain\cf1\f51\fs20\ql Metuchen License Agreement, Metuchen received an exclusive license to develop, commercialize and promote\plain\cf1\f51\fs20\ql STENDRA in the United States, Canada, South America and India (the \u8220?Metuchen Territory\u8221?)\plain\cf1\f51\fs20\ql effective October 1, 2016. The Company and Metuchen have agreed not to develop, commercialize, or in-license\plain\cf1\f51\fs20\ql any other product that operates as a PDE-5 inhibitor in the Metuchen Territory for a limited time period, subject\plain\cf1\f51\fs20\ql to certain exceptions. The Metuchen License Agreement will terminate upon the expiration of the last-to-expire\plain\cf1\f51\fs20\ql payment obligations under the Metuchen License Agreement; upon expiration of the term of the Metuchen\plain\cf1\f51\fs20\ql License Agreement, the exclusive license granted under the Metuchen License Agreement shall become fully\plain\cf1\f51\fs20\ql paid-up, royalty-free, perpetual and irrevocable as to the Company but not certain trademark royalties due to\plain\sa132\cf1\f51\fs20\ql MTPC.\par\pard\plain\fi792\cf1\f51\fs20\ql Metuchen will obtain STENDRA exclusively from the Company for a mutually agreed term pursuant to\plain\cf1\f51\fs20\ql the Metuchen Supply Agreement. Metuchen may elect to transfer the control of the supply chain for STENDRA\plain\cf1\f51\fs20\ql for the Metuchen Territory to itself or its designee by assigning to Metuchen the Company\u8217?s agreements\plain\cf1\f51\fs20\ql with the contract manufacturer. For 2016 and each subsequent calendar year during the term of the Metuchen\plain\cf1\f51\fs20\ql Supply Agreement, if Metuchen fails to purchase an agreed minimum purchase amount of STENDRA from the\plain\cf1\f51\fs20\ql Company, it will reimburse the Company for the shortfall as it relates to the Company\u8217?s out of pocket\plain\cf1\f51\fs20\ql costs to acquire the API needed to manufacture the agreed upon minimum purchase amount of STENDRA. Upon\plain\cf1\f51\fs20\ql the termination of the Metuchen Supply Agreement (other than by Metuchen for the Company\u8217?s uncured\plain\cf1\f51\fs20\ql material breach or upon completion of the transfer of the control of the supply chain), Metuchen\u8217?s agreed\plain\cf1\f51\fs20\ql minimum purchase amount of STENDRA from the Company shall accelerate for the entire then current initial\plain\cf1\f51\fs20\ql term or renewal term, as applicable. The initial term under the Metuchen Supply Agreement will be for a period\plain\cf1\f51\fs20\ql of five years, with automatic renewal for successive two-year periods unless either party provides a termination\plain\sa132\cf1\f51\fs20\ql notice to the other party at least two years in advance of the expiration of the then current term.\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Alvogen\par\pard\plain\fi792\cf1\f51\fs20\ql In September 2017, the Company entered into a license and commercialization agreement (the\plain\cf1\f51\fs20\ql \u8220?Alvogen License Agreement\u8221?) and a commercial supply agreement (the \u8220?Alvogen Supply\plain\cf1\f51\fs20\ql Agreement\u8221?) with Alvogen Malta Operations (ROW) Ltd (\u8220?Alvogen\u8221?). Under the terms of the\plain\sa132\cf1\f51\fs20\ql Alvogen License Agreement, Alvogen will be solely\par\pard\plain\cf1\f51\fs20\qc 17\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql responsible for obtaining and maintaining regulatory approvals for all sales and marketing activities for Qsymia in\plain\cf1\f51\fs20\ql South Korea. The Company received an upfront payment of $2.5 million in September 2017, which was recorded\plain\cf1\f51\fs20\ql in license and milestone revenue in the third quarter of 2017, and is eligible to receive additional payments upon\plain\cf1\f51\fs20\ql Alvogen achieving marketing authorization, commercial launch and reaching a sales milestone. Additionally, the\plain\cf1\f51\fs20\ql Company will receive a royalty on Alvogen\u8217?s Qsymia net sales in South Korea. Under the Alvogen Supply\plain\sa132\cf1\f51\fs20\ql Agreement, the Company will supply product to Alvogen on an exclusive basis.\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql PANCREAZE\par\pard\plain\fi792\cf1\f51\fs20\ql In June 2018, the Company closed on an Asset Purchase Agreement (the \u8220?PANCREAZE Purchase\plain\cf1\f51\fs20\ql Agreement\u8221?) with Janssen Pharmaceuticals, Inc. (\u8220?Janssen\u8221?) pursuant to which the Company\plain\cf1\f51\fs20\ql acquired the rights to PANCREAZE and PANCREASE MT in the U.S. and Canada and certain existing inventory\plain\sa132\cf1\f51\fs20\ql for a purchase price of $135.0 million in cash.\par\pard\plain\fi792\cf1\f51\fs20\ql The Company also acquired all of the outstanding shares of Willow Biopharma Inc.\plain\cf1\f51\fs20\ql (\u8220?Willow\u8221?). Willow had no significant assets at the time of acquisition. The Company issued\plain\cf1\f51\fs20\ql fully-exercisable warrants to the former owners of Willow, including John Amos, M. Scott Oehrlein and Kenneth\plain\cf1\f51\fs20\ql Suh, for the purchase of 357,000 shares of the Company\u8217?s common stock at an exercise price of $3.70 per\plain\cf1\f51\fs20\ql share and agreed to assume certain of Willow\u8217?s liabilities. The amounts paid to the former owners were\plain\sa132\cf1\f51\fs20\ql accounted for as a fee for the acquisition of PANCREAZE.\par\pard\plain\fi792\cf1\f51\fs20\ql As all the PANCREAZE assets acquired were a part of one product line, the PANCREAZE Purchase\plain\cf1\f51\fs20\ql Agreement was accounted for as an asset acquisition, with an intangible asset of $141.9 million for the\plain\cf1\f51\fs20\ql PANCREAZE license recorded on the consolidated balance sheet, which was comprised of the purchase price of\plain\cf1\f51\fs20\ql $135.0 million, the fair value of the warrants issued of $0.8 million, the value of liabilities assumed of $0.4\plain\cf1\f51\fs20\ql million, the value of the Willow liabilities assumed of $1.5 million and accruals for estimated destruction of\plain\cf1\f51\fs20\ql future unsalable inventory of $6.3 million, less the net value of PANCREAZE inventory acquired of $2.1 million.\plain\cf1\f51\fs20\ql The fair value of the warrants issued was recorded in additional paid-in capital and was estimated using the\plain\cf1\f51\fs20\ql Black-Scholes option pricing model, using a term of 7.0 years, an estimated volatility of 61.6%, a risk-free\plain\cf1\f51\fs20\ql interest rate of 2.91% and an expected dividend yield of 0%. The intangible asset is being amortized over an\plain\cf1\f51\fs20\ql expected useful life of 10 years, which corresponds with the expiration of certain significant patent rights related\plain\sa132\cf1\f51\fs20\ql to PANCREAZE.\par\pard\plain\fi792\cf1\f51\fs20\ql In connection with the PANCREAZE Purchase Agreement, the Company and Janssen also entered into\plain\cf1\f51\fs20\ql transition services agreements pursuant to which Janssen and a Canadian affiliate of Janssen will provide certain\plain\cf1\f51\fs20\ql transition services to the Company in the U.S. and Canada as the Company transitions to full control over the\plain\cf1\f51\fs20\ql PANCREAZE supply chain. The Company and Johnson & Johnson Health Care Systems Inc., a New Jersey\plain\cf1\f51\fs20\ql corporation and an affiliate of Janssen, also entered into a Long-Term Collaboration Agreement pursuant to which\plain\cf1\f51\fs20\ql they will cooperate in the reporting and certification of pricing and sales data and the payment of rebates and\plain\sa132\cf1\f51\fs20\ql discounts under certain governmental programs.\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb396\sa132\cf1\f51\fs22\b\ql 14. LONG-TERM DEBT AND COMMITMENTS\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql The Company\u8217?s indebtedness consists of the following (in thousands):
\par\pard\plain
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\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
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\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Balance\~as\~of\cell{
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\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc March\~31,\~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc December\~31,\~\cell{
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\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql Convertible senior notes due 2020\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 181,426\cell\pard\plain\intbl\cf1\f62\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 181,426\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql Unamortized discount and debt issuance costs\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 5,138\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 6,358\cell{
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\pard\plain\intbl\li132\cf1\f51\fs20\ql Convertible senior notes due 2020, net\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 186,564\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 187,784\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql Senior secured notes due 2024\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 110,000\cell\pard\plain\intbl\cf1\f62\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 110,000\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql Unamortized premium and debt issuance costs, net\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (3,168)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (3,338)\cell{
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\pard\plain\intbl\li132\cf1\f51\fs20\ql Senior secured notes due 2024, net\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 106,832\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 106,662\cell{
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\pard\plain\intbl\li264\cf1\f51\fs20\ql Total long-term debt\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 293,396\cell\pard\plain\intbl\cf1\f62\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 294,446\cell{
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\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Convertible Senior Notes Due 2020\par\pard\plain\fi792\cf1\f51\fs20\ql In May 2013, the Company closed offerings of $250.0 million in 4.5% Convertible Senior Notes due\plain\cf1\f51\fs20\ql May 2020 (the \u8220?Convertible Notes\u8221?). The Convertible Notes are governed by an indenture, dated\plain\cf1\f51\fs20\ql May 2013 between the Company and Deutsche Bank National Trust Company, as trustee. Total net proceeds from\plain\cf1\f51\fs20\ql the Convertible Notes were approximately $241.8 million. The Convertible Notes are convertible at a conversion\plain\cf1\f51\fs20\ql rate of $148.58 per share at the option of the holders under certain conditions at any time prior to the close of\plain\cf1\f51\fs20\ql business on the business day immediately preceding November 1, 2019. On or after November 1, 2019, holders\plain\cf1\f51\fs20\ql may convert all or any portion of their Convertible Notes at any time at their option at the conversion rate then in\plain\cf1\f51\fs20\ql effect, regardless of these conditions. Subject to certain limitations, the Company will settle conversions of the\plain\cf1\f51\fs20\ql Convertible Notes by paying or delivering, as the case may be, cash, shares of its common stock or a combination\plain\cf1\f51\fs20\ql of cash and shares of our common stock, at the Company\u8217?s election. Interest payments are made quarterly.\plain\cf1\f51\fs20\ql In June 2018, the Company repurchased $60.0 million of face value of the Convertible Notes for $51.0 million in\plain\cf1\f51\fs20\ql cash plus accrued but unpaid interest using funds received from the issuance of the Company\u8217?s Senior\plain\cf1\f51\fs20\ql Secured Notes Due 2024. The gain was accounted for as a debt modification with the gain applied to the\plain\cf1\f51\fs20\ql modified debt. In October 2018, the Company repurchased $8.6 million of face value of the Convertible Notes for\plain\cf1\f51\fs20\ql $7.1 million in cash plus accrued but unpaid interest. The gain on this repurchase of $1.4 million was accounted\plain\sa132\cf1\f51\fs20\ql for as an extinguishment of debt and recorded on the income statement as a gain on extinguishment of debt.\par\pard\plain\sb264\sa132\cf1\f51\fs20\i\ql Senior Secured Notes Due 2024\par\pard\plain\fi792\cf1\f51\fs20\ql In June 2018, the Company entered into an indenture (the \u8220?Indenture\u8221?) with U.S. Bank\plain\cf1\f51\fs20\ql National Association as trustee and collateral agent regarding the purchase agreement entered into with affiliates\plain\cf1\f51\fs20\ql of Athyrium Capital Management (collectively, the \u8220?Purchasers\u8221?) for the issuance and sale of (i)\plain\cf1\f51\fs20\ql $110.0 million of 10.375% senior secured notes due 2024 (the \u8220?2024 Notes\u8221?), (ii) up to an\plain\cf1\f51\fs20\ql additional $10.0 million of 10.375% senior secured notes due 2024 to be issued subsequently at the\plain\cf1\f51\fs20\ql Company\u8217?s option within 12 months of the issue date of the 2024 Notes, subject to certain conditions, and\plain\cf1\f51\fs20\ql (iii) a warrant for 330,000 shares issued concurrently with the issuance of the 2024 Notes. The 2024 Notes were\plain\cf1\f51\fs20\ql issued at a purchase price equal to 99% of the principal amount and contain customary representations, warranties,\plain\sa132\cf1\f51\fs20\ql covenants, conditions and indemnities.\par\pard\plain\fi792\cf1\f51\fs20\ql The Company used the net proceeds from the issuance of the 2024 Notes to pay (i) certain fees, costs\plain\cf1\f51\fs20\ql and expenses relating to the issuance and sale of the 2024 Notes, (ii) to finance a portion of the acquisition of\plain\cf1\f51\fs20\ql PANCREAZE and (iii) to repurchase $60.0 million of the Company\u8217?s outstanding Convertible Notes from\plain\cf1\f51\fs20\ql the Purchasers or their affiliates for a purchase price of $51.0 million (plus accrued but unpaid interest to the\plain\cf1\f51\fs20\ql repurchase date). The fair value of the warrant issued was estimated using the Black-Scholes option pricing\plain\cf1\f51\fs20\ql model, using a term of 6.0 years, an estimated volatility of 62.7%, a risk-free interest rate of 2.83% and an\plain\cf1\f51\fs20\ql expected dividend yield of 0%. The Indenture has an effective interest rate of 11.3% and includes customary\plain\cf1\f51\fs20\ql covenants and events of default, including covenants that, among other things, restrict the incurrence of future\plain\cf1\f51\fs20\ql indebtedness, the granting of liens, the making of investments, distributions or dividends, and the\plain\cf1\f51\fs20\ql Company\u8217?s ability to merge, consolidate or sell assets, in each case subject to certain exceptions. In\plain\cf1\f51\fs20\ql addition, the Indenture includes certain financial maintenance covenants related to minimum cash balances and\plain\sa132\cf1\f51\fs20\ql minimum quarterly net revenues related to PANCREAZE.\par\pard\plain\fi792\cf1\f51\fs20\ql Future estimated payments, including interest, on all of the Company\u8217?s indebtedness as of March\plain\sa132\cf1\f51\fs20\ql 31, 2019 are as follows (in thousands):
\par\pard\plain
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\pard\plain\intbl\cf1\f51\fs20\ql 2019 (remaining 9 months)\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 16,724\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql 2020\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 197,374\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql 2021\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 36,131\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql 2022\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 41,299\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql 2023\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 37,789\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql Thereafter\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 17,611\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 346,928\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4902\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5131\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6156\trrh248\row}}}\pard\plain\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb132\sa132\cf1\f51\fs20\i\ql Cardiovascular Outcomes Trial\par\pard\plain\sb132\fi792\cf1\f51\fs20\ql As a condition of FDA granting approval to commercialize Qsymia in the U.S., the Company agreed to\plain\cf1\f51\fs20\ql complete certain post-marketing requirements. One requirement was to perform a cardiovascular outcomes trial\plain\cf1\f51\fs20\ql (\u8220?CVOT\u8221?) on Qsymia. The cost of a CVOT is estimated to be between $180 million and $220\plain\sa132\cf1\f51\fs20\ql million incurred over\par\pard\plain\cf1\f51\fs20\qc 19\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb132\cf1\f51\fs20\ql a period of approximately five years. The Company is in dialogue with FDA to determine a pathway to provide\plain\cf1\f51\fs20\ql FDA with information to support the safety of Qsymia in a more cost-effective manner. To date, the Company\plain\sa132\cf1\f51\fs20\ql has not incurred expenses related to the CVOT.\par\pard\plain\sb132\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs2\ql \~\par\pard\plain\cf1\f51\fs2\ql \~\par\pard\plain\sa132\cf1\f51\fs22\b\ql 15. NET LOSS PER SHARE\par\pard\plain\fi792\cf1\f51\fs20\ql The Company computes basic net loss per share applicable to common stockholders based on the\plain\cf1\f51\fs20\ql weighted average number of common shares outstanding during the applicable period. Diluted net income per\plain\cf1\f51\fs20\ql share is based on the weighted average number of common and common equivalent shares, which represent shares\plain\cf1\f51\fs20\ql that may be issued in the future upon the exercise of outstanding stock options or upon a net share settlement of\plain\cf1\f51\fs20\ql the Company\u8217?s Convertible Notes. Common share equivalents are excluded from the computation in\plain\cf1\f51\fs20\ql periods in which they have an anti-dilutive effect. Stock options for which the price exceeds the average market\plain\cf1\f51\fs20\ql price over the period have an anti-dilutive effect on net income per share and, accordingly, are excluded from the\plain\cf1\f51\fs20\ql calculation. The triggering conversion conditions that allow holders of the Convertible Notes to convert have not\plain\cf1\f51\fs20\ql been met. If such conditions are met and the note holders opt to convert, the Company may choose to pay in\plain\cf1\f51\fs20\ql cash, common stock, or a combination thereof; however, if this occurs, the Company has the intent and ability to\plain\cf1\f51\fs20\ql net share settle this debt security; thus the Company uses the treasury stock method for earnings per share\plain\cf1\f51\fs20\ql purposes. Due to the effect of the capped call instrument purchased in relation to the Convertible Notes, there\plain\cf1\f51\fs20\ql would be no net shares issued until the market value of the Company\u8217?s stock exceeds $200 per share, and\plain\cf1\f51\fs20\ql thus no impact on diluted net income per share. Further, when there is a net loss, potentially dilutive common\plain\cf1\f51\fs20\ql equivalent shares are not included in the calculation of net loss per share since their inclusion would be\plain\sa132\cf1\f51\fs20\ql anti-dilutive.\par\pard\plain\fi792\cf1\f51\fs20\ql As the Company recognized a net loss for each of the three-month periods ended March 31, 2019 and\plain\cf1\f51\fs20\ql 2018, all potential common equivalent shares were excluded for these periods as they were anti-dilutive. Awards\plain\cf1\f51\fs20\ql and options which were not included in the computation of diluted net loss per share because the effect would be\plain\sa132\cf1\f51\fs20\ql anti-dilutive were 2,784,000 and 1,673,000, respectively, for the three months ended March 31, 2019 and 2018.\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb396\sa132\cf1\f51\fs22\b\ql 16. INCOME TAXES\par\pard\plain\fi792\cf1\f51\fs20\ql For the three months ended March 31, 2019, the Company recorded a benefit from income taxes of\plain\cf1\f51\fs20\ql $8,000. For the three months ended March 31, 2018, the Company recorded a provision of $12,000. The benefit\plain\sa132\cf1\f51\fs20\ql and provision for income taxes for each of the periods was primarily comprised of state taxes during the period.\par\pard\plain\fi792\cf1\f51\fs20\ql The Company periodically evaluates the realizability of its net deferred tax assets based on all available\plain\cf1\f51\fs20\ql evidence, both positive and negative. The realization of net deferred tax assets is dependent on the\plain\cf1\f51\fs20\ql Company\u8217?s ability to generate sufficient future taxable income during periods prior to the expiration of tax\plain\cf1\f51\fs20\ql attributes to fully utilize these assets. The Company weighed both positive and negative evidence and determined\plain\cf1\f51\fs20\ql that there is a continued need for a full valuation allowance on its deferred tax assets in the United States as of\plain\cf1\f51\fs20\ql March 31, 2019. Should the Company determine that it would be able to realize its remaining deferred tax assets\plain\cf1\f51\fs20\ql in the foreseeable future, an adjustment to its remaining deferred tax assets would cause a material increase to\plain\sa132\cf1\f51\fs20\ql income in the period such determination is made.\par\pard\plain\fi792\cf1\f51\fs20\ql As of March 31, 2019, the Company\u8217?s unrecognized tax benefits were related to federal and\plain\cf1\f51\fs20\ql California research and development credits which result in an unrecognized tax benefit balance of $94,000. The\plain\cf1\f51\fs20\ql Company does not expect to have any other significant changes to unrecognized tax benefits through the end of\plain\cf1\f51\fs20\ql the fiscal year. Because of the Company\u8217?s history of tax losses, certain tax years remain open to tax audit.\plain\cf1\f51\fs20\ql The Company\u8217?s policy is to recognize interest and penalties related to uncertain tax positions (if any) as a\plain\sa132\cf1\f51\fs20\ql component of the income tax provision.\par\pard\plain\fi792\cf1\f51\fs20\ql On December 22, 2017, the Tax Cuts and Jobs Act was signed into law. Among other changes is an\plain\cf1\f51\fs20\ql interest expense deduction limitation effective January 1, 2018. For the periods ending March 31, 2019 and 2018,\plain\cf1\f51\fs20\ql the Company estimated $7.7 million and $12.1 million, respectively, of non-deductible accrued interest expense in\plain\sa132\cf1\f51\fs20\ql the forecasted taxable income calculation.\par\pard\plain\cf1\f51\fs20\qc 20\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\fi792\cf1\f51\fs20\ql On January 1, 2019, the Company adopted Accounting Standards Update 2016-02, Leases (Topic 842).\plain\cf1\f51\fs20\ql See Note 12. The Company has evaluated the income tax effect from the adoption of this standard and has\plain\sa132\cf1\f51\fs20\ql determined that there is no material impact to the tax provision.\par\pard\plain\sb396\sa132\cf1\f51\fs22\b\ql 17. LEGAL MATTERS\par\pard\plain\fi792\cf1\f51\fs20\ql The Company is not aware of any asserted or unasserted claims against it where it believes that an\plain\cf1\f51\fs20\ql unfavorable resolution would have an adverse material impact on the operations or financial position of the\plain\cf1\f51\fs20\ql Company.\par\pard\plain\li792\sa44\cf1\f51\fs2\ql \~\par\pard\plain\li1584\cf1\f51\fs24\ql \~\par\pard\plain\sa132\fi792\cf1\f51\fs22\b\ql \~\par\pard\plain\cf1\f51\fs20\qc 21\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}{\*\bkmkstart item_1_3_2}{\*\bkmkend item_1_3_2}\par\pard\plain\cf1\f51\fs22\b\ql ITEM 2. MANAGEMENT\u8217?S DISCUSSION AND ANALYSIS OF FINANCIAL\plain\cf1\f51\fs22\b\ql CONDITION AND RESULTS OF OPERATIONS{\*\bkmkstart item2_managementsdiscussionandan}{\*\bkmkend item2_managementsdiscussionandan}\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql This Management\u8217?s Discussion and Analysis of Financial Condition and Results of Operations and\plain\cf1\f51\fs20\ql other parts of this Quarterly Report on Form\~10-Q contain \u8220?forward looking\u8221? statements that involve\plain\cf1\f51\fs20\ql risks and uncertainties. These statements typically may be identified by the use of forward-looking words or\plain\cf1\f51\fs20\ql phrases such as \u8220?may,\u8221? \u8220?believe,\u8221? \u8220?expect,\u8221? \u8220?forecast,\u8221?\plain\cf1\f51\fs20\ql \u8220?intend,\u8221? \u8220?anticipate,\u8221? \u8220?predict,\u8221? \u8220?should,\u8221?\plain\cf1\f51\fs20\ql \u8220?plan,\u8221? \u8220?likely,\u8221? \u8220?opportunity,\u8221? \u8220?estimated,\u8221? and\plain\cf1\f51\fs20\ql \u8220?potential,\u8221? the negative use of these words or other similar words. All forward-looking statements\plain\cf1\f51\fs20\ql included in this document are based on our current expectations, and we assume no obligation to update any such\plain\cf1\f51\fs20\ql forward-looking statements. The Private Securities Litigation Reform Act of 1995 provides a \u8220?safe\plain\cf1\f51\fs20\ql harbor\u8221? for such forward-looking statements. In order to comply with the terms of the safe harbor, we note\plain\cf1\f51\fs20\ql that a variety of factors could cause actual results and experiences to differ materially from the anticipated results\plain\cf1\f51\fs20\ql or other expectations expressed in such forward-looking statements. The risks and uncertainties that may affect\plain\cf1\f51\fs20\ql the operations, performance, development, and results of our business include but are not limited to:\par\pard\plain\sb132\fi792\cf1\f51\fs20\i\ql Risks and uncertainties related to Qsymia\u174? (phentermine and topiramate extended release):
\par\pard\plain
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our, or our current or potential partners\u8217?, ability to successfully commercialize Qsymia including\plain\intbl\cf1\f51\fs20\ql risks and uncertainties related to expansion to distribution, the broadening of payor reimbursement, the\plain\intbl\cf1\f51\fs20\ql expansion of Qsymia\u8217?s primary care presence, and the outcomes of our discussions with\plain\intbl\cf1\f51\fs20\ql pharmaceutical companies and our strategic and franchise-specific pathways for Qsymia;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh1080\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to sell through the Qsymia retail pharmacy network;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql the impact of promotional programs for Qsymia on our net product revenue and net income (loss) in\plain\intbl\cf1\f51\fs20\ql future periods;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to ensure that the entire supply chain for Qsymia timely, efficiently and consistently delivers\plain\intbl\cf1\f51\fs20\ql Qsymia to our customers and partners;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to accurately forecast Qsymia demand;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our, or our current or potential partners\u8217?, ability to successfully seek and gain approval for\plain\intbl\cf1\f51\fs20\ql Qsymia in territories outside the U.S.;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql the timing of initiation and completion of the post-approval clinical studies required as part of the\plain\intbl\cf1\f51\fs20\ql approval of Qsymia by the U.S. Food and Drug Administration (\u8220?FDA\u8221?);\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql the response from FDA to any data and/or information relating to post-approval clinical studies required\plain\intbl\cf1\f51\fs20\ql for Qsymia;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to work with FDA to significantly reduce or remove the requirements of the clinical\plain\intbl\cf1\f51\fs20\ql post-approval cardiovascular outcomes trial (\u8220?CVOT\u8221?);\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql the impact of the indicated uses and contraindications contained in the Qsymia label and the Risk\plain\intbl\cf1\f51\fs20\ql Evaluation and Mitigation Strategy (\u8220?REMS\u8221?) requirements;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql the impact of any possible future requirement to provide further analysis of previously submitted clinical\plain\intbl\cf1\f51\fs20\ql trial data;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh1552
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our dialog with the European Medicines Agency (\u8220?EMA\u8221?) relating to the U.S.-based\plain\intbl\cf1\f51\fs20\ql CVOT for Qsymia, and the resubmission of an application for the grant of a marketing authorization to\plain\intbl\cf1\f51\fs20\ql EMA, the timing and scope of such resubmission, if any, the results of any required CVOT, the\plain\intbl\cf1\f51\fs20\ql assessment by EMA of the application for marketing authorization, and their agreement with the data\plain\intbl\cf1\f51\fs20\ql from any required CVOT and ultimately the decision of the European Commission whether to grant\plain\intbl\cf1\f51\fs20\ql marketing authorization for Qsymia in the EU;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh1552\row}}}\pard\plain\sb132\fi792\cf1\f51\fs20\i\ql Risks and uncertainties related to PANCREAZE (pancrelipase):
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to maintain the relationship with the sole manufacturer for PANCREAZE;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to accurately forecast PANCREAZE demand;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to maintain a satisfactory level of PANCREAZE inventory;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh562
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql risks and uncertainties related to the timing, strategy, tactics and success of the marketing and sales of\plain\intbl\cf1\f51\fs20\ql PANCREAZE;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh562\row}}}\pard\plain\cf1\f51\fs20\qc 22\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to successfully maintain and increase market share against current competing products and\plain\intbl\cf1\f51\fs20\ql potential competitors that may develop alternative formulations of the drug;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh562
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql the ability of our partners to maintain regulatory approvals to manufacture and adequately supply our\plain\intbl\cf1\f51\fs20\ql products to meet demand;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh562\row}}}\pard\plain\sb132\fi792\cf1\f51\fs20\i\ql Risks and uncertainties related to STENDRA\u174? (avanafil) or SPEDRA\u8482? (avanafil):
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to manage the supply chain for STENDRA/SPEDRA for our current or potential commercial\plain\intbl\cf1\f51\fs20\ql collaborators;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql risks and uncertainties related to the timing, strategy, tactics and success of the launches and\plain\intbl\cf1\f51\fs20\ql commercialization of STENDRA/SPEDRA by our current or potential collaborators;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh832
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to successfully complete, on acceptable terms and on a timely basis, avanafil partnering\plain\intbl\cf1\f51\fs20\ql discussions for territories under our license with Mitsubishi Tanabe Pharma Corporation in which we do\plain\intbl\cf1\f51\fs20\ql not have a commercial collaboration partner;\cell{
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql Sanofi Chimie\u8217?s ability to manufacture the avanafil active pharmaceutical ingredient and Sanofi\plain\intbl\cf1\f51\fs20\ql Winthrop Industrie\u8217?s ability to manufacture avanafil tablets;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh562
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql the ability of our partners to maintain regulatory approvals to manufacture and adequately supply our\plain\intbl\cf1\f51\fs20\ql products to meet demand;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh562\row}}}\pard\plain\sb132\fi792\cf1\f51\fs20\i\ql Risks and uncertainties related to our business:
\par\pard\plain
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our history of losses and variable quarterly results;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to effectively manage expenses;\cell{
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql risks related to our ability to protect our intellectual property and litigation in which we are involved or\plain\intbl\cf1\f51\fs20\ql may become involved;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql uncertainties of government or third-party payor reimbursement;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our reliance on sole-source suppliers, third parties and our collaborative partners;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to successfully develop or acquire a proprietary formulation of tacrolimus;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to identify and acquire cash flow generating assets and opportunities;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh832
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql risks related to the failure to obtain or retain federal or state-controlled substances registrations and\plain\intbl\cf1\f51\fs20\ql noncompliance with Drug Enforcement Administration (\u8220?DEA\u8221?) or state controlled\plain\intbl\cf1\f51\fs20\ql substances regulations;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh832\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql risks related to the failure to obtain FDA or foreign authority clearances or approvals and\plain\intbl\cf1\f51\fs20\ql noncompliance with FDA or foreign authority regulations;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to develop a proprietary formulation and to demonstrate through clinical testing the quality,\plain\intbl\cf1\f51\fs20\ql safety, and efficacy of our current and future investigational drug candidates;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql the timing of initiation and completion of clinical trials and submissions to U.S. and foreign authorities;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql compliance with post-marketing regulatory standards, post-marketing obligations or pharmacovigilance\plain\intbl\cf1\f51\fs20\ql rules is not maintained;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql the volatility and liquidity of the financial markets;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our liquidity and capital resources;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our expected future revenues, operations and expenditures;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to execute on our business strategy to enhance long-term stockholder value;\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh338\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to address or potentially reduce our outstanding balance of $181.4 million of the 4.5%\plain\intbl\cf1\f51\fs20\ql Convertible Senior Notes due 2020 (the \u8220?Convertible Notes\u8221?);\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql our ability to successfully integrate recent changes to our Board of Directors and the senior management\plain\intbl\cf1\f51\fs20\ql team; and\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh585\row}}}
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{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh810
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sb66\cf1\f51\fs20\ql other factors that are described from time to time in our periodic filings with the Securities and\plain\intbl\cf1\f51\fs20\ql Exchange Commission (the \u8220?SEC\u8221?) including those set forth in this filing as \u8220?Part II.\plain\intbl\cf1\f51\fs20\ql Item 1A. Risk Factors.\u8221?\cell{
{\trowd\clvertalc\cellx420\cellx760\clvertalc\cellx780\cellx9529\trrh810\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\qc 23\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\fi792\cf1\f51\fs20\ql When we refer to \u8220?we,\u8221? \u8220?our,\u8221? \u8220?us,\u8221? the\plain\cf1\f51\fs20\ql \u8220?Company\u8221? or \u8220?VIVUS\u8221? in this document, we mean the current Delaware corporation,\plain\sa132\cf1\f51\fs20\ql or VIVUS,\~Inc., and its California predecessor, as well as all of our consolidated subsidiaries.\par\pard\plain\fi792\cf1\f51\fs20\ql All percentage amounts and ratios were calculated using the underlying data in thousands. Operating\plain\cf1\f51\fs20\ql results for the three months ended March 31, 2019 are not necessarily indicative of the results that may be\plain\sa132\cf1\f51\fs20\ql expected for the full fiscal year or any future period.\par\pard\plain\fi792\cf1\f51\fs20\ql You should read the following management\u8217?s discussion and analysis of our financial condition\plain\cf1\f51\fs20\ql and results of operations in conjunction with our audited consolidated financial statements and related notes\plain\cf1\f51\fs20\ql thereto included as part of our Annual Report on Form\~10-K for the year ended December\~31, 2018, as filed with\plain\cf1\f51\fs20\ql the SEC on February 26, 2019 and other disclosures (including the disclosures under \u8220?Part\~II. Item\~1A.\plain\cf1\f51\fs20\ql Risk Factors\u8221?) included in this Quarterly Report on Form\~10-Q. Our unaudited condensed consolidated\plain\cf1\f51\fs20\ql financial statements have been prepared in accordance with U.S. generally accepted accounting principles and are\plain\sa132\cf1\f51\fs20\ql presented in U.S. dollars.\par\pard\plain\sa132\cf1\f51\fs20\b\ql Reverse Stock Split\par\pard\plain\fi792\cf1\f51\fs20\ql On September 10, 2018, we effected a one-for-10 reverse stock split of our common stock. As a result\plain\cf1\f51\fs20\ql of the reverse stock split, every 10 shares of our pre-reverse split common stock issued and outstanding was\plain\cf1\f51\fs20\ql combined and converted into one issued and outstanding share of post-reverse split common stock without any\plain\cf1\f51\fs20\ql change in the par value of the shares. Accordingly, an amount equal to the par value of the decreased shares\plain\cf1\f51\fs20\ql resulting from the reverse stock split was reclassified from \u8220?Common stock\u8221? to \u8220?Additional\plain\cf1\f51\fs20\ql paid-in capital.\u8221? No fractional shares were issued as a result of the reverse stock split; any fractional shares\plain\cf1\f51\fs20\ql that would have resulted were rounded up to the nearest whole share. Proportionate voting rights and other rights\plain\cf1\f51\fs20\ql of stockholders were not affected by the reverse stock split, other than as a result of the rounding up of potential\plain\cf1\f51\fs20\ql fractional shares. All stock options, warrants and restricted stock units outstanding and common stock reserved for\plain\cf1\f51\fs20\ql issuance under our equity incentive plans immediately prior to the reverse stock split were adjusted by dividing\plain\cf1\f51\fs20\ql the number of affected shares of common stock by 10 and, where applicable, multiplying the exercise price by 10.\plain\cf1\f51\fs20\ql All share and per share amounts related to common stock, stock options, warrants and restricted stock units have\plain\sa132\cf1\f51\fs20\ql been restated for all periods to give retroactive effect to the reverse stock split.\par\pard\plain\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sa132\cf1\f51\fs20\b\ql OVERVIEW\par\pard\plain\fi792\cf1\f51\fs20\ql VIVUS is a specialty pharmaceutical company with three approved therapies and one product candidate\plain\cf1\f51\fs20\ql in active clinical development. Qsymia\u174? (phentermine and topiramate extended release) is approved by FDA\plain\cf1\f51\fs20\ql for chronic weight management. In June 2018, we acquired the U.S. and Canadian commercial rights for\plain\cf1\f51\fs20\ql PANCREAZE\u174? (pancrelipase), which is indicated for the treatment of exocrine pancreatic insufficiency\plain\cf1\f51\fs20\ql (\u8220?EPI\u8221?) due to cystic fibrosis or other conditions. STENDRA\u174? (avanafil) is approved by FDA\plain\cf1\f51\fs20\ql for erectile dysfunction (\u8220?ED\u8221?) and by the EC under the trade name SPEDRA, for the treatment of\plain\cf1\f51\fs20\ql ED in the EU. VI-0106 (tacrolimus) is in active clinical development and is being studied in patients with\plain\sa198\cf1\f51\fs20\ql pulmonary arterial hypertension (\u8220?PAH\u8221?).\par\pard\plain\sa132\cf1\f51\fs20\b\i\ql Business Strategy\par\pard\plain\fi792\cf1\f51\fs20\ql Early in 2018, we announced that we would focus our strategy on building a portfolio of cash flow\plain\cf1\f51\fs20\ql generating assets to leverage our expertise in commercializing specialty pharmaceutical assets. In June 2018, we\plain\cf1\f51\fs20\ql completed the first acquisition under this strategy as we acquired all product rights for PANCREAZE\u174?\plain\cf1\f51\fs20\ql (pancrelipase) in the United States and PANCREASE\u174? MT in Canada for $135.0 million in cash from\plain\cf1\f51\fs20\ql Janssen Pharmaceuticals. PANCREAZE is a prescription medicine used to treat people who cannot digest food\plain\cf1\f51\fs20\ql normally because their pancreas does not make enough enzymes due to cystic fibrosis or other conditions. We\plain\cf1\f51\fs20\ql believe we can support PANCREAZE in the U.S. market by leveraging our existing commercial infrastructure and\plain\cf1\f51\fs20\ql expanding it to include up to 10 additional sales representatives in the U.S. and up to two sales representatives in\plain\cf1\f51\fs20\ql Canada focused on gastro-intestinal and cystic fibrosis physicians. We expect to build a small commercial\plain\sa132\cf1\f51\fs20\ql presence in Canada to support PANCREASE MT, the trade name for pancrelipase in Canada.\par\pard\plain\fi792\cf1\f51\fs20\ql In April 2018, we announced the acquisition of Willow Biopharma Inc. (\u8220?Willow\u8221?). With\plain\cf1\f51\fs20\ql this acquisition, we announced the addition of three new members to our senior leadership team. John Amos was\plain\cf1\f51\fs20\ql named our new Chief Executive Officer and a member of the VIVUS Board of Directors. Kenneth Suh continued\plain\cf1\f51\fs20\ql as President and Chief Executive Officer of Willow until being named President of VIVUS in August 2018. M.\plain\cf1\f51\fs20\ql Scott Oehrlein was named to the newly created position of Chief Operations Officer of VIVUS. These three\plain\cf1\f51\fs20\ql individuals have a strong track record of building successful cash flow positive businesses organically and through\plain\sa132\cf1\f51\fs20\ql product acquisition. In\par\pard\plain\cf1\f51\fs20\qc 24\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql combination with the other current members of the senior leadership team, we believe that we are well positioned\plain\sa132\cf1\f51\fs20\ql to continue to successfully execute on our business strategy.\par\pard\plain\fi792\cf1\f51\fs20\ql In April 2018, we entered into a note purchase agreement (the \u8220?Note Purchase Agreement\u8221?)\plain\cf1\f51\fs20\ql with affiliates of Athyrium Capital Management (\u8220?Athyrium\u8221?) for the issuance and sale of up to\plain\cf1\f51\fs20\ql $110.0 million of 10.375% senior secured notes due 2024 to be issued substantially concurrently with the\plain\cf1\f51\fs20\ql consummation of the PANCREAZE acquisition. The Note Purchase Agreement also allows up to an additional\plain\cf1\f51\fs20\ql $10.0 million of 10.375% senior secured notes due 2024 to be issued at our option within 12 months of the initial\plain\cf1\f51\fs20\ql issue date, subject to certain conditions. Notes in the amount of $110.0 million were issued in June 2018.\plain\cf1\f51\fs20\ql Concurrent with the issuance of the initial notes, we issued warrants to purchase 0.3 million shares of our\plain\cf1\f51\fs20\ql common stock to the note holders. Additionally, concurrent with the issuance of the senior secured notes, we\plain\cf1\f51\fs20\ql repurchased Convertible Notes held by Athyrium, with a face value of $60.0 million, at a discount to par plus\plain\cf1\f51\fs20\ql accrued interest. In October 2018, we settled a purchase of approximately $8.6 million outstanding principal\plain\cf1\f51\fs20\ql amount of our Convertible Notes for approximately $7.1 million plus accrued interest. We continue our evaluation\plain\cf1\f51\fs20\ql of alternatives for addressing our remaining $181.4 million of Convertible Notes. See the Liquidity and Capital\plain\sa132\cf1\f51\fs20\ql Resources section below for a further discussion.\par\pard\plain\sa132\cf1\f51\fs20\b\i\ql Commercial Products\par\pard\plain\sa132\cf1\f51\fs20\b\i\ql Qsymia\par\pard\plain\fi792\cf1\f51\fs20\ql FDA approved Qsymia in July 2012 as an adjunct to a reduced calorie diet and increased physical\plain\cf1\f51\fs20\ql activity for chronic weight management in adult obese or overweight patients in the presence of at least one\plain\cf1\f51\fs20\ql weight related comorbidity, such as hypertension, type 2 diabetes mellitus or high cholesterol, or dyslipidemia.\plain\cf1\f51\fs20\ql Qsymia incorporates a proprietary formulation combining low doses of the active ingredients from two approved\plain\cf1\f51\fs20\ql drugs, phentermine and topiramate. Although the exact mechanism of action is unknown, Qsymia is believed to\plain\cf1\f51\fs20\ql suppress appetite and increase satiety, or the feeling of being full, the two main mechanisms that impact eating\plain\sa132\cf1\f51\fs20\ql behavior.\par\pard\plain\fi792\cf1\f51\fs20\ql We commercialize Qsymia in the U.S. through a specialty sales force who promote Qsymia to physicians.\plain\cf1\f51\fs20\ql Our sales efforts are focused on maintaining a commercial presence with high volume prescribers of anti-obesity\plain\cf1\f51\fs20\ql products. Our marketing efforts have focused on rolling out unique programs to encourage targeted prescribers to\plain\cf1\f51\fs20\ql gain more experience with Qsymia with their obese or overweight patient population. We continue to invest in\plain\cf1\f51\fs20\ql digital media in order to amplify our messaging to information-seeking consumers. The digital messaging\plain\cf1\f51\fs20\ql encourages those consumers most likely to take action to speak with their physicians about obesity treatment\plain\cf1\f51\fs20\ql options. We believe our enhanced digital strategies deliver clear and compelling communications to potential\plain\cf1\f51\fs20\ql patients. We utilize a patient savings plan to further drive Qsymia brand preference at the point of prescription\plain\sa132\cf1\f51\fs20\ql and to encourage long-term use of the brand.\par\pard\plain\fi792\cf1\f51\fs20\ql In September 2017, we entered into a license and commercialization agreement (the \u8220?Alvogen\plain\cf1\f51\fs20\ql License Agreement\u8221?) and a commercial supply agreement (the \u8220?Alvogen Supply Agreement\u8221?)\plain\cf1\f51\fs20\ql with Alvogen Malta Operations (ROW) Ltd (\u8220?Alvogen\u8221?). Under the terms of the Alvogen License\plain\cf1\f51\fs20\ql Agreement, Alvogen will be solely responsible for obtaining and maintaining regulatory approvals for all sales\plain\cf1\f51\fs20\ql and marketing activities for Qsymia in South Korea. We received an upfront payment of $2.5 million in\plain\cf1\f51\fs20\ql September 2017 and are eligible to receive additional payments upon Alvogen achieving marketing authorization,\plain\cf1\f51\fs20\ql commercial launch and reaching a sales milestone. Additionally, we will receive a royalty on Alvogen\u8217?s\plain\cf1\f51\fs20\ql Qsymia net sales in South Korea. Under the Alvogen Supply Agreement, we will supply product to Alvogen on\plain\sa132\cf1\f51\fs20\ql an exclusive basis.\par\pard\plain\sb264\sa132\cf1\f51\fs20\b\i\ql PANCREAZE\par\pard\plain\fi792\cf1\f51\fs20\ql Since its approval, PANCREAZE has been commercialized by Janssen. In June 2018, we acquired the\plain\cf1\f51\fs20\ql commercial rights to PANCREAZE and PANCREASE MT in the U.S. and Canada. In connection with the\plain\cf1\f51\fs20\ql acquisition of PANCREAZE, we and Janssen also entered into transition services agreements pursuant to which\plain\cf1\f51\fs20\ql Janssen and a Canadian affiliate of Janssen will provide certain transition services to us in the U.S. and Canada as\plain\cf1\f51\fs20\ql we transition to full control over the PANCREAZE supply chain, beginning in the first quarter of 2019. In the\plain\cf1\f51\fs20\ql first quarter of 2019, we relaunched PANCREAZE by leveraging our existing commercial infrastructure and\plain\cf1\f51\fs20\ql expanding it to include 10 additional contract sales representatives in the U.S. and up to two sales representatives\plain\sa264\cf1\f51\fs20\ql in Canada focused on gastro-intestinal and cystic fibrosis physicians.\par\pard\plain\fi792\cf1\f51\fs20\ql Approved in 2010, PANCREAZE is a pancreatic enzyme preparation consisting of pancrelipase, an\plain\cf1\f51\fs20\ql extract derived from porcine pancreatic glands, as well as other enzyme classes, including porcine-derived lipases,\plain\sa264\cf1\f51\fs20\ql proteases\par\pard\plain\cf1\f51\fs20\qc 25\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql and amylases. PANCREAZE is specifically indicated for the treatment of exocrine pancreatic insufficiency\plain\cf1\f51\fs20\ql (\u8220?EPI\u8221?). EPI is a condition that results from a deficiency in the production and/or secretion of\plain\cf1\f51\fs20\ql pancreatic enzymes. It is associated with cystic fibrosis and chronic pancreatitis, and affects approximately 85\plain\cf1\f51\fs20\ql percent of cystic fibrosis patients. There is no cure for EPI and pancreatic enzyme replacement therapy is the\plain\sa264\cf1\f51\fs20\ql primary treatment for the condition.\par\pard\plain\sb264\sa132\cf1\f51\fs20\b\i\ql STENDRA/SPEDRA\par\pard\plain\fi792\cf1\f51\fs20\ql STENDRA is an oral phosphodiesterase type 5 (\u8220?PDE5\u8221?) inhibitor that we have licensed\plain\cf1\f51\fs20\ql from Mitsubishi Tanabe Pharma Corporation (\u8220?MTPC\u8221?). FDA approved STENDRA in April 2012\plain\cf1\f51\fs20\ql for the treatment of ED in the United States. In June 2013, the EC adopted a decision granting marketing\plain\sa264\cf1\f51\fs20\ql authorization for SPEDRA, the approved trade name for avanafil in the EU, for the treatment of ED in the EU.\par\pard\plain\fi792\cf1\f51\fs20\ql The Menarini Group, through its subsidiary Berlin Chemie AG (\u8220?Menarini\u8221?), is our\plain\cf1\f51\fs20\ql exclusive licensee for the commercialization and promotion of SPEDRA for the treatment of ED in over 40\plain\cf1\f51\fs20\ql countries, including the EU Member States, Australia and New Zealand. In addition, Menarini licensed rights\plain\cf1\f51\fs20\ql directly from MTPC to commercialize avanafil in certain Asian territories. We receive royalties from Menarini\plain\cf1\f51\fs20\ql based on SPEDRA net sales and are entitled to receive future milestone payments based on certain net sales\plain\cf1\f51\fs20\ql targets. Menarini will also reimburse us for payments made to cover various obligations to MTPC during the term\plain\sa264\cf1\f51\fs20\ql of the Menarini License Agreement. Menarini obtains SPEDRA exclusively from us.\par\pard\plain\fi792\cf1\f51\fs20\ql Metuchen Pharmaceuticals LLC (\u8220?Metuchen\u8221?) is our exclusive licensee for the development,\plain\cf1\f51\fs20\ql commercialization and promotion of STENDRA in the United States, Canada, South America and India. Metuchen\plain\cf1\f51\fs20\ql reimburses us for payments made to cover royalty and milestone obligations to MTPC, but otherwise owes us no\plain\sa264\cf1\f51\fs20\ql future royalties. Metuchen obtains STENDRA exclusively from us.\par\pard\plain\fi792\cf1\f51\fs20\ql We are currently in discussions with potential collaboration partners to develop, market and sell\plain\cf1\f51\fs20\ql STENDRA/SPEDRA for territories in which we do not currently have a commercial collaboration, including\plain\sa264\cf1\f51\fs20\ql Africa, the Middle East, Turkey, Russia, Mexico and Central America.\par\pard\plain\sb198\sa132\cf1\f51\fs20\b\i\ql Product Development Pipeline and Life Cycle Management\par\pard\plain\sb198\sa132\cf1\f51\fs20\b\i\ql VI-0106 - Pulmonary Arterial Hypertension\par\pard\plain\fi792\cf1\f51\fs20\ql PAH is a chronic, life-threatening disease characterized by elevated blood pressure in the pulmonary\plain\cf1\f51\fs20\ql arteries, which are the arteries between the heart and lungs, due to pathologic proliferation of epithelial and\plain\cf1\f51\fs20\ql vascular smooth muscle cells in the lining of these blood vessels and excess vasoconstriction. Pulmonary blood\plain\cf1\f51\fs20\ql pressure is normally between 8 and 20 mmHg at rest as measured by right heart catheterization. In patients with\plain\cf1\f51\fs20\ql PAH, the pressure in the pulmonary artery is greater than 25 mmHg at rest or 30 mmHg during physical activity.\plain\sa264\cf1\f51\fs20\ql These high pressures make it difficult for the heart to pump blood through the lungs to be oxygenated.\par\pard\plain\fi792\cf1\f51\fs20\ql The current medical therapies for PAH involve endothelin receptor antagonists, PDE5 inhibitors,\plain\cf1\f51\fs20\ql prostacyclin analogues, selective prostaglandin I2 receptor agonists, and soluble guanate cyclase stimulators, which\plain\cf1\f51\fs20\ql aim to reduce symptoms and improve quality of life. All currently approved products treat the symptoms of PAH,\plain\cf1\f51\fs20\ql but do not address the underlying disease. We believe that tacrolimus can be used to enhance bone morphogenetic\plain\cf1\f51\fs20\ql protein receptor type 2 (\u8220?BMPR2\u8221?) signaling, which is reduced in PAH patients, and may therefore\plain\sa264\cf1\f51\fs20\ql address a fundamental cause of PAH.\par\pard\plain\fi792\cf1\f51\fs20\ql The prevalence of PAH varies among specific populations, but it is estimated at between 15 and 50 cases\plain\cf1\f51\fs20\ql per million adults. PAH usually develops between the ages of 20 and 60 but can occur at any age, with a mean\plain\cf1\f51\fs20\ql age of diagnosis around 45 years. Idiopathic PAH is the most common type, constituting approximately 40% of\plain\sa264\cf1\f51\fs20\ql the total diagnosed PAH cases, and occurs two to four times more frequently in females.\par\pard\plain\fi792\cf1\f51\fs20\ql On January 6, 2017, we acquired the exclusive, worldwide rights for the development and\plain\cf1\f51\fs20\ql commercialization of BMPR2 activators for the treatment of PAH and related vascular diseases from Selten\plain\cf1\f51\fs20\ql Pharma, Inc. (\u8220?Selten\u8221?). Selten assigned to us its license to a group of patents owned by the Board\plain\cf1\f51\fs20\ql of Trustees of the Leland Stanford Junior University (\u8220?Stanford\u8221?) which cover uses of tacrolimus\plain\sa264\cf1\f51\fs20\ql and ascomycin to treat PAH. We paid Selten\par\pard\plain\cf1\f51\fs20\qc 26\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql an upfront payment of $1.0 million, and we will pay additional milestone payments based on global development\plain\cf1\f51\fs20\ql status and future sales milestones, as well as tiered royalty payments on future sales of these compounds. The\plain\cf1\f51\fs20\ql total potential milestone payments are $39.0 million to Selten. We have assumed full responsibility for the\plain\cf1\f51\fs20\ql development and commercialization of the licensed compounds for the treatment of PAH and related vascular\plain\sa264\cf1\f51\fs20\ql diseases.\par\pard\plain\fi792\cf1\f51\fs20\ql In October 2017, we held a pre-IND meeting with FDA for VI-0106, our proprietary formulation of\plain\cf1\f51\fs20\ql tacrolimus for the treatment of PAH. FDA addressed our questions related to preclinical, nonclinical and clinical\plain\cf1\f51\fs20\ql data and the planned design of clinical trials of tacrolimus in class III and IV PAH patients, and clarified the\plain\cf1\f51\fs20\ql requirements needed to file an IND to initiate a clinical trial in this indication. As discussed with FDA, we\plain\cf1\f51\fs20\ql currently intend to design and conduct clinical trials that could qualify for Fast Track and/or Breakthrough\plain\sa264\cf1\f51\fs20\ql Therapy designation.\par\pard\plain\fi792\cf1\f51\fs20\ql Tacrolimus for the treatment of PAH has received Orphan Drug Designation from FDA in the U.S. and\plain\cf1\f51\fs20\ql the EU on the basis of a scientific opinion adopted by the Committee for Orphan Medicinal Products of the\plain\cf1\f51\fs20\ql European Medicines Agency in the EU. We are focusing on the development of a proprietary oral formulation of\plain\cf1\f51\fs20\ql tacrolimus to be used in a clinical development program and, if approved, for commercial use. We anticipate\plain\cf1\f51\fs20\ql filing an IND with FDA and completing the development of our proprietary formulation of tacrolimus in 2018.\plain\sa264\cf1\f51\fs20\ql We are currently seeking alternatives for financing the development of tacrolimus.\par\pard\plain\sb198\sa132\cf1\f51\fs20\b\i\ql Qsymia for Additional Indications\par\pard\plain\fi792\cf1\f51\fs20\ql We are currently considering further development of Qsymia for the treatment of various diseases,\plain\cf1\f51\fs20\ql including obstructive sleep apnea and nonalcoholic steatohepatitis (\u8220?NASH\u8221?). We expect no future\plain\sa264\cf1\f51\fs20\ql development until we have concluded our discussions with FDA regarding our CVOT for Qsymia.\par\pard\plain\sa132\cf1\f51\fs20\b\ql CRITICAL ACCOUNTING POLICIES AND ESTIMATES\par\pard\plain\fi792\cf1\f51\fs20\ql The discussion and analysis of our financial condition and results of operations are based upon our\plain\cf1\f51\fs20\ql unaudited condensed consolidated financial statements, which have been prepared in accordance with accounting\plain\cf1\f51\fs20\ql principles generally accepted in the U.S. The preparation of these financial statements requires us to make\plain\cf1\f51\fs20\ql estimates and judgments that affect the reported amounts of assets, liabilities, revenues, expenses and related\plain\cf1\f51\fs20\ql disclosures. On an ongoing basis, we evaluate our estimates, including those related to available-for-sale\plain\cf1\f51\fs20\ql securities, research and development expenses, income taxes, inventories, revenues, including revenues from\plain\cf1\f51\fs20\ql multiple-element arrangements, contingencies and litigation and share-based compensation. We base our estimates\plain\cf1\f51\fs20\ql on historical experience, information received from third parties and on various market specific and other relevant\plain\cf1\f51\fs20\ql assumptions that are believed to be reasonable under the circumstances, the results of which form the basis for\plain\cf1\f51\fs20\ql making judgments about the carrying values of assets and liabilities that are not readily apparent from other\plain\sa132\cf1\f51\fs20\ql sources. Actual results may differ significantly from these estimates under different assumptions or conditions.\par\pard\plain\fi792\cf1\f51\fs20\ql Our significant accounting policies are more fully described in Note 1 to our audited consolidated\plain\cf1\f51\fs20\ql financial statements and in \u8220?Management\u8217?s Discussion and Analysis of Financial Condition and\plain\cf1\f51\fs20\ql Results of Operations \u8212? Critical Accounting Policies and Estimates\u8221? contained in our Annual Report\plain\cf1\f51\fs20\ql on Form\~10-K for the year ended December 31, 2018 as filed with the SEC on February 26, 2019. There have\plain\cf1\f51\fs20\ql been no changes to our significant accounting policies since our Annual Report on Form 10-K for the year ended\plain\sa132\cf1\f51\fs20\ql December 31, 2018 with the exception of accounting for leases as follows.\par\pard\plain\sb132\fi792\cf1\f51\fs20\ql In February 2016, the FASB issued Accounting Standards Update 2016-02,\plain\cf1\f51\fs20\i\ql Leases\plain\cf1\f51\fs20\ql which modifies the\plain\cf1\f51\fs20\ql accounting by lessees for all leases with a term greater than 12 months. This standard requires lessees to\plain\cf1\f51\fs20\ql recognize on the balance sheet the assets and liabilities for the rights and obligations created by those leases. we\plain\cf1\f51\fs20\ql adopted this standard on January 1, 2019. Our only significant lease is our operating lease for our corporate\plain\sa132\cf1\f51\fs20\ql headquarters,\par\pard\plain\cf1\f51\fs20\qc 27\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb132\cf1\f51\fs20\ql although we have several smaller leases, including financing leases for our automobile fleet and copiers. At the\plain\sa132\cf1\f51\fs20\ql time of adoption, we recorded the following amounts (in thousands):
\par\pard\plain
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\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Right-of-Use\plain\intbl\cf1\f51\fs16\b\qc Asset\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Current\plain\intbl\cf1\f51\fs16\b\qc Portion of\plain\intbl\cf1\f51\fs16\b\qc Lease Liability\cell\pard\plain\intbl\cf1\f62\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Lease Liability,\plain\intbl\cf1\f51\fs16\b\qc Net of Current\plain\intbl\cf1\f51\fs16\b\qc Portion\cell\pard\plain\intbl\cf1\f62\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Current Portion\plain\intbl\cf1\f51\fs16\b\qc of Deferred Rent\cell\pard\plain\intbl\cf1\f62\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Deferred Rent,\plain\intbl\cf1\f51\fs16\b\qc Net of Current\plain\intbl\cf1\f51\fs16\b\qc Portion\cell\pard\plain\intbl\cf1\f62\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Accumulated\plain\intbl\cf1\f51\fs16\b\qc Deficit\cell{
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{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1258\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1771\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2527\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2700\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3033\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3815\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3963\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4316\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5140\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5288\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5634\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6526\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6674\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7020\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7912\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8060\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8553\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9346\trrh495
\pard\plain\intbl\cf1\f51\fs20\ql Operating\plain\intbl\cf1\f51\fs20\ql leases\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,201\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 512\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,017\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\cf1\f51\fs20\qr (94)\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\cf1\f51\fs20\qr (234)\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1258\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1771\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2527\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2700\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3033\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3815\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3963\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4316\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5140\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5288\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5634\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6526\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6674\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7020\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7912\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8060\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8553\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9346\trrh495\row}}}
{\trowd\trqc\clvertalb\cellx1258\clbrdrb\brdrs\brdrcf1\clvertalb\cellx1771\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2527\clvertalb\cellx2700\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3033\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3815\clvertalb\cellx3963\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4316\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5140\clvertalb\cellx5288\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5634\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6526\clvertalb\cellx6674\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7020\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7912\clvertalb\cellx8060\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8553\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9346\trrh495
\pard\plain\intbl\cf1\f51\fs20\ql Financing\plain\intbl\cf1\f51\fs20\ql leases\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 329\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 131\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 188\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10\cell{
{\trowd\trqc\clvertalb\cellx1258\clbrdrb\brdrs\brdrcf1\clvertalb\cellx1771\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2527\clvertalb\cellx2700\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3033\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3815\clvertalb\cellx3963\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4316\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5140\clvertalb\cellx5288\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5634\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6526\clvertalb\cellx6674\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7020\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7912\clvertalb\cellx8060\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8553\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9346\trrh495\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1258\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1771\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2527\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2700\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3033\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3815\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3963\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4316\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5140\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5288\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5634\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6526\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6674\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7020\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7912\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8060\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8553\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9346\trrh272
\pard\plain\intbl\cf1\f51\fs20\ql Total\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,530\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 643\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,205\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\cf1\f51\fs20\qr (94)\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\cf1\f51\fs20\qr (234)\cell\pard\plain\intbl\cf1\f62\fs22\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1258\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1771\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2527\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2700\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3033\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3815\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3963\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4316\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5140\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5288\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5634\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6526\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6674\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7020\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7912\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8060\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8553\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9346\trrh272\row}}}\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sa132\cf1\f51\fs20\b\ql RESULTS OF OPERATIONS{\*\bkmkstart _hlk486514497_12866592}{\*\bkmkend _hlk486514497_12866592}\par\pard\plain\sa132\cf1\f51\fs20\i\ql Revenues
\par\pard\plain
{\trowd\trqc\clvertalb\cellx3973\clvertalb\cellx4590\clvertalb\cellx4811\clvertalb\cellx5876\clvertalb\cellx6165\clvertalb\cellx6386\clvertalb\cellx7467\clvertalb\cellx7735\clvertalb\cellx8668\clvertalb\cellx9072\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx3973\clvertalb\cellx4590\clvertalb\cellx4811\clvertalb\cellx5876\clvertalb\cellx6165\clvertalb\cellx6386\clvertalb\cellx7467\clvertalb\cellx7735\clvertalb\cellx8668\clvertalb\cellx9072\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3973\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4590\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7469\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7737\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9070\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended March\~31,\~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Increase/\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3973\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4590\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7469\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7737\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9070\trrh198\row}}}
{\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3973\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4590\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5876\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6165\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7468\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7736\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9069\trrh198
\pard\plain\intbl\cf1\f51\fs16\b\ql (in\~thousands,\~except\~for\~percentages)\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (Decrease)\cell{
{\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3973\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4590\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5876\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6165\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7468\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7736\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9069\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3973\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4590\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4811\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5876\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6165\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7467\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8668\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9072\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Qsymia\u8212?Net product revenue\cell\pard\plain\intbl\li264\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 8,423\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 9,632\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (13)\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3973\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4590\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4811\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5876\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6165\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7467\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8668\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9072\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3973\clvertalb\cellx4590\clvertalb\cellx4811\clvertalb\cellx5876\clvertalb\cellx6165\clvertalb\cellx6386\clvertalb\cellx7467\clvertalb\cellx7735\clvertalb\cellx8668\clvertalb\cellx9072\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql PANCREAZE - Net product revenue\cell\pard\plain\intbl\li264\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 5,074\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr N/A\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx3973\clvertalb\cellx4590\clvertalb\cellx4811\clvertalb\cellx5876\clvertalb\cellx6165\clvertalb\cellx6386\clvertalb\cellx7467\clvertalb\cellx7735\clvertalb\cellx8668\clvertalb\cellx9072\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3973\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4590\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4811\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5876\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6165\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7467\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8668\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9072\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Supply revenue\cell\pard\plain\intbl\li264\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,604\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,683\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (5)\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3973\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4590\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4811\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5876\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6165\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7467\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8668\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9072\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3973\clvertalb\cellx4590\clvertalb\cellx4811\clvertalb\cellx5876\clvertalb\cellx6165\clvertalb\cellx6386\clvertalb\cellx7467\clvertalb\cellx7735\clvertalb\cellx8668\clvertalb\cellx9072\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql STENDRA/SPEDRA royalty revenue\cell\pard\plain\intbl\li264\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 475\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 585\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (19)\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\cellx3973\clvertalb\cellx4590\clvertalb\cellx4811\clvertalb\cellx5876\clvertalb\cellx6165\clvertalb\cellx6386\clvertalb\cellx7467\clvertalb\cellx7735\clvertalb\cellx8668\clvertalb\cellx9072\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3973\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4590\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4811\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5876\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6165\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7467\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8668\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9072\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql PANCREAZE royalty revenue\cell\pard\plain\intbl\li264\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 570\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr N/A\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3973\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4590\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4811\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5876\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6165\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7467\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7735\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8668\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9072\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3973\clvertalb\cellx4590\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4811\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5876\clvertalb\cellx6165\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6386\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7467\clvertalb\cellx7735\clvertalb\cellx8668\clvertalb\cellx9072\trrh248
\pard\plain\intbl\li264\cf1\f51\fs20\ql Total revenue\cell\pard\plain\intbl\li396\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 16,146\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 11,900\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 36\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\cellx3973\clvertalb\cellx4590\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx4811\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx5876\clvertalb\cellx6165\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx6386\clbrdrb\brdrdb\brdrcf1\clvertalb\cellx7467\clvertalb\cellx7735\clvertalb\cellx8668\clvertalb\cellx9072\trrh248\row}}}\pard\plain\cf1\f51\fs20\ql \~{\*\bkmkstart _hlk5371719_12866592}{\*\bkmkend _hlk5371719_12866592}\par\pard\plain\sa132\cf1\f51\fs20\i\ql Net product revenue\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql Shipments and prescriptions for net product revenue consisted of the following:
\par\pard\plain
{\trowd\trqc\clvertalb\cellx3764\clvertalb\cellx5168\clvertalb\cellx5565\clvertalb\cellx6969\clvertalb\cellx7356\clvertalb\cellx8454\clvertalb\cellx8887\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx3764\clvertalb\cellx5168\clvertalb\cellx5565\clvertalb\cellx6969\clvertalb\cellx7356\clvertalb\cellx8454\clvertalb\cellx8887\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3764\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6969\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7356\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8885\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended March\~31,\~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Increase/\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3764\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6969\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7356\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8885\trrh198\row}}}
{\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3764\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5168\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5565\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6969\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7356\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8885\trrh198
\pard\plain\intbl\cf1\f51\fs16\b\ql (in\~thousands,\~except\~for\~percentages)\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell\pard\plain\intbl\cf1\f51\fs16\b\qc \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (Decrease)\cell{
{\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3764\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5168\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5565\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6969\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7356\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8885\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3764\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5168\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5565\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6969\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7356\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8454\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Qsymia units shipped to wholesalers\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 75\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 83\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (10)\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3764\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5168\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5565\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6969\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7356\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8454\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx3764\clvertalb\cellx5168\clvertalb\cellx5565\clvertalb\cellx6969\clvertalb\cellx7356\clvertalb\cellx8454\clvertalb\cellx8887\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Qsymia prescriptions dispensed\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 82\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 92\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (11)\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\cellx3764\clvertalb\cellx5168\clvertalb\cellx5565\clvertalb\cellx6969\clvertalb\cellx7356\clvertalb\cellx8454\clvertalb\cellx8887\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3764\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5168\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5565\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6969\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7356\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8454\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql PANCREAZE units shipped\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 26\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr N/A\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3764\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5168\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5565\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6969\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7356\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8454\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8887\trrh248\row}}}\pard\plain\sb264\fi792\cf1\f51\fs20\ql The decrease in Qsymia net product revenue is due primarily to decreases in script volumes and supply\plain\cf1\f51\fs20\ql chain management by wholesalers. We anticipate a continuation of the volatility in the timing of Qsymia sales due\plain\cf1\f51\fs20\ql to the variable nature of the anti-obesity market, and we expect to see increases in scripts and shipments in the\plain\cf1\f51\fs20\ql second half of 2019 as a result of our implementation of the direct-to-patient distribution model and other\plain\cf1\f51\fs20\ql marketing efforts. PANCREAZE net product revenue was negatively impacted in the first quarter of 2019 by\plain\cf1\f51\fs20\ql higher wholesaler fees as we took over supply chain management and additional gross-to-net reductions related\plain\cf1\f51\fs20\ql to promotional strategies, including the issuance of discount coupons. We anticipate that future PANCREAZE\plain\cf1\f51\fs20\ql product revenue will fluctuate from period to period based on our wholesalers\u8217? management of the supply\plain\cf1\f51\fs20\ql chain and the impact of our relaunch efforts. Also, we anticipate that future PANCREAZE net product revenue\plain\cf1\f51\fs20\ql will continue to be negatively impacted by higher wholesaler fees as we transitioned to full control over the\plain\cf1\f51\fs20\ql supply chain by the end of the first quarter of 2019 and by potential future promotional strategies, including\plain\sa132\cf1\f51\fs20\ql coupon programs.\par\pard\plain\sa132\cf1\f51\fs20\i\ql License and milestone revenue\par\pard\plain\fi792\cf1\f51\fs20\ql License and milestone revenues are dependent on the timing of entering into new collaborations and the\plain\cf1\f51\fs20\ql timing of our collaborators meeting or being reasonably certain of meeting certain milestone events. As a result,\plain\sa132\cf1\f51\fs20\ql our license and milestone revenue will fluctuate materially between periods.\par\pard\plain\sa132\cf1\f51\fs20\i\ql Supply revenue\par\pard\plain\fi792\cf1\f51\fs20\ql The decrease in supply revenue in 2019 as compared to 2018 is due to the timing of orders from our\plain\cf1\f51\fs20\ql commercialization partners. We supply STENDRA/SPEDRA to our collaborations partners on a cost-plus basis.\plain\cf1\f51\fs20\ql The variations in supply revenue are a result of the timing of orders placed by our partners and may or may not\plain\cf1\f51\fs20\ql reflect end user demand for STENDRA/SPEDRA. The timing of purchases by our commercialization partners will\plain\cf1\f51\fs20\ql be affected by, among other items, their minimum purchase commitments, end user demand, and distributor\plain\cf1\f51\fs20\ql inventory levels. As a result, supply revenue has and will continue to fluctuate materially between reporting\plain\sa132\cf1\f51\fs20\ql periods.\par\pard\plain\cf1\f51\fs20\qc 28\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sa132\cf1\f51\fs20\i\ql Royalty revenue\par\pard\plain\fi792\cf1\f51\fs20\ql We record royalty revenue related to Canadian sales of PANCREASE MT and sales of\plain\cf1\f51\fs20\ql STENDRA/SPEDRA based on reports provided by our partners. Once we take over operations for Canadian sales\plain\cf1\f51\fs20\ql for PANCREASE MT, including ownership of the Canadian inventory, we expect that net sales of PANCREASE\plain\cf1\f51\fs20\ql MT will be recorded as net product revenue with costs recorded as cost of goods sold. We expect\plain\cf1\f51\fs20\ql STENDRA/SPEDRA royalty revenue in 2019 to remain relatively consistent. In addition, we expect royalty\plain\cf1\f51\fs20\ql revenue from Canadian PANCREASE MT sales to remain relatively consistent until we assume commercial\plain\sa132\cf1\f51\fs20\ql responsibility in mid 2019.{\*\bkmkstart _hlk486514566_12866592}{\*\bkmkend _hlk486514566_12866592}\par\pard\plain\sa132\cf1\f51\fs20\i\ql Cost of goods sold
\par\pard\plain
{\trowd\trqc\clvertalb\cellx1924\clvertalb\cellx2083\clvertalb\cellx2585\clvertalb\cellx2911\clvertalb\cellx3021\clvertalb\cellx3304\clvertalb\cellx3806\clvertalb\cellx4132\clvertalb\cellx4242\clvertalb\cellx4476\clvertalb\cellx4978\clvertalb\cellx5304\clvertalb\cellx5414\clvertalb\cellx5540\clvertalb\cellx5950\clvertalb\cellx6276\clvertalb\cellx6386\clvertalb\cellx6545\clvertalb\cellx7047\clvertalb\cellx7373\clvertalb\cellx7483\clvertalb\cellx7717\clvertalb\cellx8219\clvertalb\cellx8545\clvertalb\cellx8655\clvertalb\cellx8781\clvertalb\cellx9191\clvertalb\cellx9517\trrh66
\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell\pard\plain\intbl\cf1\f51\fs1\ql \~\cell{
{\trowd\trqc\clvertalb\cellx1924\clvertalb\cellx2083\clvertalb\cellx2585\clvertalb\cellx2911\clvertalb\cellx3021\clvertalb\cellx3304\clvertalb\cellx3806\clvertalb\cellx4132\clvertalb\cellx4242\clvertalb\cellx4476\clvertalb\cellx4978\clvertalb\cellx5304\clvertalb\cellx5414\clvertalb\cellx5540\clvertalb\cellx5950\clvertalb\cellx6276\clvertalb\cellx6386\clvertalb\cellx6545\clvertalb\cellx7047\clvertalb\cellx7373\clvertalb\cellx7483\clvertalb\cellx7717\clvertalb\cellx8219\clvertalb\cellx8545\clvertalb\cellx8655\clvertalb\cellx8781\clvertalb\cellx9191\clvertalb\cellx9517\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh149
\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\b\qc Three Months Ended March\~31,\~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh149\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6282\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6392\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9527\trrh149
\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs12\qc \~\cell\pard\plain\intbl\cf1\f51\fs12\b\qc 2018\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6282\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6392\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9527\trrh149\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2911\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3021\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4133\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4243\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5305\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5415\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6278\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6388\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7375\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7485\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8547\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8657\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9520\trrh297
\pard\plain\intbl\cf1\f51\fs12\b\ql (In\~thousands,\~except\~percentages)\cell\pard\plain\intbl\cf1\f51\fs12\b\qc Qsymia\cell\pard\plain\intbl\cf1\f51\fs15\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\b\qc PANCREAZE\cell\pard\plain\intbl\cf1\f51\fs15\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\b\qc STENDRA/\plain\intbl\cf1\f51\fs12\b\qc SPEDRA\cell\pard\plain\intbl\cf1\f51\fs15\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\b\qc Total\cell\pard\plain\intbl\cf1\f51\fs15\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\b\qc Qsymia\cell\pard\plain\intbl\cf1\f51\fs15\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\b\qc STENDRA/\plain\intbl\cf1\f51\fs12\b\qc SPEDRA\cell\pard\plain\intbl\cf1\f51\fs15\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\b\qc Total\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx2911\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx3021\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4133\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4243\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5305\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5415\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6278\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6388\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7375\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7485\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8547\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8657\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9520\trrh297\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1924\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2083\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2585\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2911\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3021\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4132\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4242\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4978\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5414\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5540\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5950\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6276\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7047\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7373\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7483\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7717\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8219\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8781\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9191\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9517\trrh149
\pard\plain\intbl\cf1\f51\fs12\ql Net product revenue\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 8,423\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 5,074\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 13,497\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 9,632\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 9,632\cell\pard\plain\intbl\cf1\f62\fs12\ql \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1924\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2083\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2585\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2911\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3021\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4132\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4242\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4978\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5414\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5540\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5950\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6276\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7047\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7373\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7483\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7717\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8219\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8781\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9191\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9517\trrh149\row}}}
{\trowd\trqc\clvertalb\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2083\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2585\clvertalb\cellx2911\clvertalb\cellx3021\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3304\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3806\clvertalb\cellx4132\clvertalb\cellx4242\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4476\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4978\clvertalb\cellx5304\clvertalb\cellx5414\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5540\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5950\clvertalb\cellx6276\clvertalb\cellx6386\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6545\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7047\clvertalb\cellx7373\clvertalb\cellx7483\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7717\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8219\clvertalb\cellx8545\clvertalb\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8781\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9191\clvertalb\cellx9517\trrh149
\pard\plain\intbl\cf1\f51\fs12\ql Supply revenue\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,604\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,604\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,683\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,683\cell\pard\plain\intbl\cf1\f62\fs12\ql \~\cell{
{\trowd\trqc\clvertalb\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2083\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2585\clvertalb\cellx2911\clvertalb\cellx3021\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3304\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3806\clvertalb\cellx4132\clvertalb\cellx4242\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4476\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4978\clvertalb\cellx5304\clvertalb\cellx5414\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5540\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5950\clvertalb\cellx6276\clvertalb\cellx6386\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6545\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7047\clvertalb\cellx7373\clvertalb\cellx7483\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7717\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8219\clvertalb\cellx8545\clvertalb\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8781\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9191\clvertalb\cellx9517\trrh149\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2083\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2585\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2911\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3021\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3304\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4132\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4242\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4978\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5414\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5540\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5950\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6276\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6545\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7047\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7373\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7483\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7717\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8219\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8781\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9191\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9517\trrh149
\pard\plain\intbl\li264\cf1\f51\fs12\ql Total product and supply revenue\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 8,423\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 100%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 5,074\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 100%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,604\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 100%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 15,101\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 100%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 9,632\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 100%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,683\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 100%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 11,315\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 100%\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2083\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2585\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2911\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3021\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3304\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4132\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4242\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4978\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5414\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5540\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5950\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6276\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6545\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7047\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7373\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7483\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7717\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8219\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8781\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9191\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9517\trrh149\row}}}
{\trowd\trqc\clvertalb\cellx1924\clvertalb\cellx2083\clvertalb\cellx2585\clvertalb\cellx2911\clvertalb\cellx3021\clvertalb\cellx3304\clvertalb\cellx3806\clvertalb\cellx4132\clvertalb\cellx4242\clvertalb\cellx4476\clvertalb\cellx4978\clvertalb\cellx5304\clvertalb\cellx5414\clvertalb\cellx5540\clvertalb\cellx5950\clvertalb\cellx6276\clvertalb\cellx6386\clvertalb\cellx6545\clvertalb\cellx7047\clvertalb\cellx7373\clvertalb\cellx7483\clvertalb\cellx7717\clvertalb\cellx8219\clvertalb\cellx8545\clvertalb\cellx8655\clvertalb\cellx8781\clvertalb\cellx9191\clvertalb\cellx9517\trrh149
\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell{
{\trowd\trqc\clvertalb\cellx1924\clvertalb\cellx2083\clvertalb\cellx2585\clvertalb\cellx2911\clvertalb\cellx3021\clvertalb\cellx3304\clvertalb\cellx3806\clvertalb\cellx4132\clvertalb\cellx4242\clvertalb\cellx4476\clvertalb\cellx4978\clvertalb\cellx5304\clvertalb\cellx5414\clvertalb\cellx5540\clvertalb\cellx5950\clvertalb\cellx6276\clvertalb\cellx6386\clvertalb\cellx6545\clvertalb\cellx7047\clvertalb\cellx7373\clvertalb\cellx7483\clvertalb\cellx7717\clvertalb\cellx8219\clvertalb\cellx8545\clvertalb\cellx8655\clvertalb\cellx8781\clvertalb\cellx9191\clvertalb\cellx9517\trrh149\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1924\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2083\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2585\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2911\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3021\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4132\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4242\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4978\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5414\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5540\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5950\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6276\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7047\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7373\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7483\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7717\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8219\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8781\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9191\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9517\trrh297
\pard\plain\intbl\cf1\f51\fs12\ql Cost of goods sold (excluding\plain\intbl\cf1\f51\fs12\ql amortization)\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,382\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 16%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,461\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 29%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,465\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 91%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 4,308\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 29%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,044\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 11%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,586\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 94%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 2,630\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 23%\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1924\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2083\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2585\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2911\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3021\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4132\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4242\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4476\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4978\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5414\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5540\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5950\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6276\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7047\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7373\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7483\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7717\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8219\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8781\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9191\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9517\trrh297\row}}}
{\trowd\trqc\clvertalb\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2083\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2585\clvertalb\cellx2911\clvertalb\cellx3021\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3304\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3806\clvertalb\cellx4132\clvertalb\cellx4242\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4476\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4978\clvertalb\cellx5304\clvertalb\cellx5414\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5540\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5950\clvertalb\cellx6276\clvertalb\cellx6386\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6545\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7047\clvertalb\cellx7373\clvertalb\cellx7483\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7717\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8219\clvertalb\cellx8545\clvertalb\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8781\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9191\clvertalb\cellx9517\trrh149
\pard\plain\intbl\cf1\f51\fs12\ql Amortization of intangible assets\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 91\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 3,547\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 70%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr \~\u8212?\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 0%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 3,638\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 24%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 91\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr \~\u8212?\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 0%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 91\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1%\cell{
{\trowd\trqc\clvertalb\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2083\clbrdrb\brdrs\brdrcf1\clvertalb\cellx2585\clvertalb\cellx2911\clvertalb\cellx3021\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3304\clbrdrb\brdrs\brdrcf1\clvertalb\cellx3806\clvertalb\cellx4132\clvertalb\cellx4242\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4476\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4978\clvertalb\cellx5304\clvertalb\cellx5414\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5540\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5950\clvertalb\cellx6276\clvertalb\cellx6386\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6545\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7047\clvertalb\cellx7373\clvertalb\cellx7483\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7717\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8219\clvertalb\cellx8545\clvertalb\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\cellx8781\clbrdrb\brdrs\brdrcf1\clvertalb\cellx9191\clvertalb\cellx9517\trrh149\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2083\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2585\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2911\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3021\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3304\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4132\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4242\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4978\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5414\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5540\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5950\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6276\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6545\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7047\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7373\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7483\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7717\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8219\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8781\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9191\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9517\trrh149
\pard\plain\intbl\li264\cf1\f51\fs12\ql Total cost of goods sold\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,473\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 17%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 5,008\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 99%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,465\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 91%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 7,946\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 53%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,135\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 12%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1,586\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 94%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 2,721\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 24%\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1924\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2083\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2585\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2911\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3021\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3304\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4132\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4242\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4476\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4978\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5414\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5540\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5950\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6276\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6545\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7047\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7373\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7483\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7717\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8219\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8781\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9191\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9517\trrh149\row}}}
{\trowd\trqc\clvertalb\cellx1924\clvertalb\cellx2083\clvertalb\cellx2585\clvertalb\cellx2911\clvertalb\cellx3021\clvertalb\cellx3304\clvertalb\cellx3806\clvertalb\cellx4132\clvertalb\cellx4242\clvertalb\cellx4476\clvertalb\cellx4978\clvertalb\cellx5304\clvertalb\cellx5414\clvertalb\cellx5540\clvertalb\cellx5950\clvertalb\cellx6276\clvertalb\cellx6386\clvertalb\cellx6545\clvertalb\cellx7047\clvertalb\cellx7373\clvertalb\cellx7483\clvertalb\cellx7717\clvertalb\cellx8219\clvertalb\cellx8545\clvertalb\cellx8655\clvertalb\cellx8781\clvertalb\cellx9191\clvertalb\cellx9517\trrh149
\pard\plain\intbl\li264\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell\pard\plain\intbl\cf1\f51\fs12\qr \~\cell{
{\trowd\trqc\clvertalb\cellx1924\clvertalb\cellx2083\clvertalb\cellx2585\clvertalb\cellx2911\clvertalb\cellx3021\clvertalb\cellx3304\clvertalb\cellx3806\clvertalb\cellx4132\clvertalb\cellx4242\clvertalb\cellx4476\clvertalb\cellx4978\clvertalb\cellx5304\clvertalb\cellx5414\clvertalb\cellx5540\clvertalb\cellx5950\clvertalb\cellx6276\clvertalb\cellx6386\clvertalb\cellx6545\clvertalb\cellx7047\clvertalb\cellx7373\clvertalb\cellx7483\clvertalb\cellx7717\clvertalb\cellx8219\clvertalb\cellx8545\clvertalb\cellx8655\clvertalb\cellx8781\clvertalb\cellx9191\clvertalb\cellx9517\trrh149\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1924\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2083\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2585\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2911\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3021\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3304\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4132\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4242\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4476\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4978\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5414\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5540\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5950\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6276\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6545\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7047\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7373\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7483\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7717\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8219\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8781\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9191\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9517\trrh149
\pard\plain\intbl\li264\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 6,950\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 83%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 66\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 1%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 139\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 9%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 7,155\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 47%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 8,497\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 88%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 97\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 6%\cell\pard\plain\intbl\cf1\f51\fs12\ql \~\cell\pard\plain\intbl\cf1\f51\fs12\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 8,594\cell\pard\plain\intbl\ri66\cf1\f51\fs12\qr 76%\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx1924\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2083\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2585\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx2911\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3021\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3304\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx3806\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4132\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4242\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4476\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4978\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5304\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5414\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5540\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5950\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6276\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6386\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6545\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7047\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7373\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7483\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7717\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8219\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8545\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8655\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8781\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9191\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9517\trrh149\row}}}\pard\plain\sb132\fi594\cf1\f51\fs20\ql Cost of goods sold for Qsymia includes the inventory costs of API, third party contract manufacturing and\plain\cf1\f51\fs20\ql packaging and distribution costs, royalties, cargo insurance, freight, shipping, handling and storage costs, and\plain\cf1\f51\fs20\ql overhead costs of the employees involved with production. Cost of goods sold for PANCREAZE includes third\plain\cf1\f51\fs20\ql party contract manufacturing costs, amortization of the PANCREAZE license, service fees, royalties, insurance,\plain\cf1\f51\fs20\ql and overhead costs. Cost of goods sold for STENDRA/SPEDRA shipped to our commercialization partners\plain\cf1\f51\fs20\ql includes the inventory costs of API and tableting. Fluctuations in the cost of goods sold as a percentage of net\plain\cf1\f51\fs20\ql product and supply revenue over the periods was primary due to the sales mix among Qsymia,\plain\sa264\cf1\f51\fs20\ql STENDRA/SPEDRA and PANCREAZE.{\*\bkmkstart _hlk5371764_12866592}{\*\bkmkend _hlk5371764_12866592}{\*\bkmkstart _hlk486514621_12866592}{\*\bkmkend _hlk486514621_12866592}\par\pard\plain\sa132\cf1\f51\fs20\i\ql Selling, general and administrative expense
\par\pard\plain
{\trowd\trqc\clvertalb\cellx4269\clvertalb\cellx4482\clvertalb\cellx5654\clvertalb\cellx5957\clvertalb\cellx6170\clvertalb\cellx7342\clvertalb\cellx7644\clvertalb\cellx8454\clvertalb\cellx8869\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx4269\clvertalb\cellx4482\clvertalb\cellx5654\clvertalb\cellx5957\clvertalb\cellx6170\clvertalb\cellx7342\clvertalb\cellx7644\clvertalb\cellx8454\clvertalb\cellx8869\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4269\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7345\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7647\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8869\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended March\~31,\~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Increase/\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4269\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7345\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7647\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8869\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4269\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5655\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5958\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7344\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7646\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8868\trrh198
\pard\plain\intbl\cf1\f51\fs16\b\ql (In\~thousands,\~except\~percentages)\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (Decrease)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4269\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5655\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx5958\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7344\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7646\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8868\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4269\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5654\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5957\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6170\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7342\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7644\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8454\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8869\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Selling and marketing\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 4,534\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 4,279\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~6\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4269\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4482\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5654\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5957\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6170\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7342\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7644\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8454\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8869\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4269\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4482\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5654\clvertalb\cellx5957\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6170\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7342\clvertalb\cellx7644\clvertalb\cellx8454\clvertalb\cellx8869\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql General and administrative\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 5,284\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 5,789\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (9)\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\cellx4269\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4482\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5654\clvertalb\cellx5957\clbrdrb\brdrs\brdrcf1\clvertalb\cellx6170\clbrdrb\brdrs\brdrcf1\clvertalb\cellx7342\clvertalb\cellx7644\clvertalb\cellx8454\clvertalb\cellx8869\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4269\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4482\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5654\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5957\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6170\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7342\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7644\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8454\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8869\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Total selling, general and administrative expenses\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 9,818\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 10,068\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (2)\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4269\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4482\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5654\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5957\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6170\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7342\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7644\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8454\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8869\trrh248\row}}}\pard\plain\sb132\fi792\cf1\f51\fs20\ql The increase in selling and marketing expenses for the three months ended March 31, 2019, compared to\plain\cf1\f51\fs20\ql the same periods in 2018, was due primarily to commercialization efforts for PANCREAZE, including additions\plain\cf1\f51\fs20\ql to our sales force to support the relaunch in the first quarter of 2019 and promotional activities. Selling and\plain\sa132\cf1\f51\fs20\ql marketing expenses are expected to remain stable in future quarters.\par\pard\plain\sb132\fi792\cf1\f51\fs20\ql The decrease in general and administrative expenses in the three months ended March 31, 2019 compared\plain\cf1\f51\fs20\ql to the same periods in 2018 was primarily due to lower business development efforts in 2019 compared to 2018.\plain\cf1\f51\fs20\ql General and administrative expenses could fluctuate significantly on a quarterly basis due to the timing of\plain\sa264\cf1\f51\fs20\ql activities within our business strategy review.\par\pard\plain\cf1\f51\fs20\qc 29\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}{\*\bkmkstart _hlk5371881_12866592}{\*\bkmkend _hlk5371881_12866592}{\*\bkmkstart _hlk486514673_12866592}{\*\bkmkend _hlk486514673_12866592}\par\pard\plain\sa132\cf1\f51\fs20\i\ql Research and development expense
\par\pard\plain
{\trowd\trqc\clvertalb\cellx4717\clvertalb\cellx4941\clvertalb\cellx6114\clvertalb\cellx6431\clvertalb\cellx6655\clvertalb\cellx7835\clvertalb\cellx8145\clvertalb\cellx9106\clvertalb\cellx9529\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx4717\clvertalb\cellx4941\clvertalb\cellx6114\clvertalb\cellx6431\clvertalb\cellx6655\clvertalb\cellx7835\clvertalb\cellx8145\clvertalb\cellx9106\clvertalb\cellx9529\trrh66\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4717\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7837\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198
\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended March\~31,\~\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Increase/\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4717\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7837\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198\row}}}
{\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4717\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6115\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6432\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7837\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198
\pard\plain\intbl\cf1\f51\fs16\b\ql Drug\~Indication/Description\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (Decrease)\cell{
{\trowd\trqc\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4717\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6115\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6432\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7837\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8147\clbrdrb\brdrs\brdrcf1\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9528\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4717\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4941\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6114\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6431\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6655\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7835\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8145\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9106\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198
\pard\plain\intbl\cf1\f51\fs16\b\ql (In\~thousands,\~except\~percentages)\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\ql \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4717\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx4941\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6114\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6431\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx6655\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx7835\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx8145\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9106\clvertalb\clshdng100\clcfpat7\clcbpat7\cellx9529\trrh198\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4717\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4941\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6114\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6431\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7835\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9106\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql Qsymia\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 692\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 19\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 3,542\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4717\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4941\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6114\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6431\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7835\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9106\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4717\clvertalb\cellx4941\clvertalb\cellx6114\clvertalb\cellx6431\clvertalb\cellx6655\clvertalb\cellx7835\clvertalb\cellx8145\clvertalb\cellx9106\clvertalb\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql STENDRA\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 41\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 49\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (16)\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\cellx4717\clvertalb\cellx4941\clvertalb\cellx6114\clvertalb\cellx6431\clvertalb\cellx6655\clvertalb\cellx7835\clvertalb\cellx8145\clvertalb\cellx9106\clvertalb\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4717\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4941\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6114\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6431\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7835\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9106\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql PANCREAZE\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 642\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr N/A\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4717\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4941\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6114\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6431\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7835\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9106\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx4717\clvertalb\cellx4941\clvertalb\cellx6114\clvertalb\cellx6431\clvertalb\cellx6655\clvertalb\cellx7835\clvertalb\cellx8145\clvertalb\cellx9106\clvertalb\cellx9529\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql VI-0106\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 25\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 561\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (96)\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql Share-based compensation\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 55\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 81\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (32)\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4717\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4941\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6114\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6431\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6655\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7835\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9106\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}
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\pard\plain\intbl\cf1\f51\fs20\ql Overhead costs*\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,014\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 693\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 46\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql Total research and development expenses\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 2,469\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 1,403\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 76\cell\pard\plain\intbl\cf1\f51\fs20\ql %\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4717\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx4941\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6114\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6431\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6655\clbrdrb\brdrdb\brdrcf1\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7835\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8145\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9106\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx9529\trrh248\row}}}\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\pard\plain\li902\fi-110\cf1\f51\fs18\ql *Overhead costs include compensation and related expenses, consulting, legal and other professional services fees\plain\li902\sa132\cf1\f51\fs18\ql relating to research and development activities, which we do not allocate to specific projects.\par\pard\plain\fi792\cf1\f51\fs20\ql The increase in total research and development expenses in the three months ended March 31, 2019 as\plain\cf1\f51\fs20\ql compared to the same period in 2018 was primarily due to higher spending for our Qsymia adolescent safety and\plain\cf1\f51\fs20\ql efficacy study (OB-403) as we get ready to enroll our first patients. Additionally, we have increased spending\plain\cf1\f51\fs20\ql related to post marketing requirements assumed as part of the acquisition of PANCREAZE last June. Our\plain\cf1\f51\fs20\ql spending to develop tacrolimus for the treatment of PAH experienced a temporary decrease due to the timing of\plain\cf1\f51\fs20\ql development activities. We expect research and development expenses to continue to remain stable over the\plain\sa132\cf1\f51\fs20\ql remaining nine months in 2019.\par\pard\plain\sa132\cf1\f51\fs20\i\ql Interest expense and other expense, net\par\pard\plain\fi792\cf1\f51\fs20\ql Interest expense and other expense, net for the three months ended March 31, 2019 was $3.9 million\plain\cf1\f51\fs20\ql compared to $8.3 million for the three months ended March 31, 2018. The decrease in 2019 is due to the\plain\cf1\f51\fs20\ql paydown of debt in 2018, partially offset by the additional debt issued in June 2018. Interest expense and other\plain\cf1\f51\fs20\ql expense, net consists primarily of interest expense and the amortization of issuance costs from our convertible\plain\cf1\f51\fs20\ql notes and senior secured notes and the amortization of the debt discount on the convertible notes. Other expense\plain\cf1\f51\fs20\ql and income were not significant. We expect interest and other expense (income) for the remainder of 2019 to\plain\cf1\f51\fs20\ql remain consistent. We expect to make annual interest payments of $19.6 million in 2019 on our convertible and\plain\sa132\cf1\f51\fs20\ql senior secured notes.\par\pard\plain\sa132\cf1\f51\fs20\i\ql Provision for (benefit from) income taxes\par\pard\plain\fi792\cf1\f51\fs20\ql For the three months ended March 31, 2019, we recorded a benefit from income taxes of $8,000,\plain\cf1\f51\fs20\ql compared to a provision for income taxes of $12,000 for the three months ended March 31, 2018. The provision\plain\sa132\cf1\f51\fs20\ql and benefit for income taxes for both of the periods is primarily comprised of state taxes during the period.\par\pard\plain\fi792\cf1\f51\fs20\ql We periodically evaluate the realizability of our net deferred tax assets based on all available evidence,\plain\cf1\f51\fs20\ql both positive and negative. The realization of net deferred tax assets is dependent on our ability to generate\plain\cf1\f51\fs20\ql sufficient future taxable income during periods prior to the expiration of tax attributes to fully utilize these assets.\plain\cf1\f51\fs20\ql We weighed both positive and negative evidence and determined that there is a continued need for a full valuation\plain\cf1\f51\fs20\ql allowance on our deferred tax assets in the U.S. as of March 31, 2019. Should there be a change in our ability to\plain\cf1\f51\fs20\ql recover our deferred tax assets, we would recognize a benefit to our tax provision in the period in which we\plain\sa132\cf1\f51\fs20\ql determine that it is more likely than not that we will recover its deferred tax assets.\par\pard\plain\sb264\sa132\cf1\f51\fs20\ql LIQUIDITY AND CAPITAL RESOURCES\par\pard\plain\fi792\cf1\f51\fs20\i\ql Cash.\plain\cf1\f51\fs20\ql Cash, cash equivalents and available-for-sale securities totaled $104.7 million at March 31, 2019,\plain\cf1\f51\fs20\ql as compared to $111.2 million at December\~31, 2018. The decrease was primarily due to net cash used for\plain\sa132\cf1\f51\fs20\ql operating activities and debt servicing during the period.\par\pard\plain\fi792\cf1\f51\fs20\ql We invest our excess cash balances in money market, U.S. government securities and corporate debt\plain\cf1\f51\fs20\ql securities in accordance with our investment policy. Our investment policy has the primary investment objectives\plain\cf1\f51\fs20\ql of preservation of principal; however, there may be times when certain of the securities in our portfolio will fall\plain\cf1\f51\fs20\ql below the credit ratings required in the policy. If those securities are downgraded or impaired, we would\plain\cf1\f51\fs20\ql experience realized or unrealized losses in the value of our portfolio, which would have an adverse effect on our\plain\cf1\f51\fs20\ql results of operations, liquidity and financial condition. From time to time, the Company may also invest its cash\plain\cf1\f51\fs20\ql to retire or purchase its outstanding debt in open market purchases, privately negotiated transactions or otherwise.\plain\sa132\cf1\f51\fs20\ql Investment\par\pard\plain\cf1\f51\fs20\qc 30\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql securities are exposed to various risks, such as interest rate, market and credit. Due to the level of risk associated\plain\cf1\f51\fs20\ql with certain investment securities and the level of uncertainty related to changes in the value of investment\plain\cf1\f51\fs20\ql securities, it is possible that changes in these risk factors in the near term could have an adverse material impact\plain\sa132\cf1\f51\fs20\ql on our results of operations or stockholders\u8217? equity.\par\pard\plain\fi792\cf1\f51\fs20\i\ql Accounts Receivable.\plain\cf1\f51\fs20\ql \~We extend credit to our customers for product sales resulting in accounts\plain\cf1\f51\fs20\ql receivable. Customer accounts are monitored for past due amounts. Past due accounts receivable, determined to be\plain\cf1\f51\fs20\ql uncollectible, are written off against the allowance for doubtful accounts. Allowances for doubtful accounts are\plain\cf1\f51\fs20\ql estimated based upon past due amounts, historical losses and existing economic factors, and are adjusted\plain\cf1\f51\fs20\ql periodically. Historically, we have had no significant uncollectable accounts receivable. We offer cash discounts to\plain\sa132\cf1\f51\fs20\ql our customers, generally 2% of the sales price as an incentive for prompt payment.\par\pard\plain\fi792\cf1\f51\fs20\ql Accounts receivable (net of allowance for cash discounts) at March 31, 2019, was $24.6 million, as\plain\cf1\f51\fs20\ql compared to $25.6 million at December 31, 2018. Currently, we have not recorded any reserves related to the\plain\sa264\cf1\f51\fs20\ql collectability of accounts receivable.\par\pard\plain\li1188\fi-396\cf1\f51\fs20\i\ql Summary Cash Flows
\par\pard\plain
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\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
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\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc Three Months Ended March\~31,\~\cell{
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\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2019\cell\pard\plain\intbl\cf1\f51\fs16\qc \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc 2018\cell{
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\pard\plain\intbl\cf1\f51\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs16\b\qc (in\~thousands)\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql Cash provided by (used for):\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
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\pard\plain\intbl\li264\cf1\f51\fs20\ql Operating activities\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (6,940)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql $\cell\pard\plain\intbl\cf1\f51\fs20\qr (11,988)\cell{
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\pard\plain\intbl\li264\cf1\f51\fs20\ql Investing activities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (450)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr 26,991\cell{
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\pard\plain\intbl\li264\cf1\f51\fs20\ql Financing activities\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\u8212?\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ri66\cf1\f51\fs20\qr \~\cell\pard\plain\intbl\cf1\f51\fs20\qr (4,590)\cell{
{\trowd\trqc\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5195\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx5443\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6597\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx6927\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx7175\clvertalb\clshdng100\clcfpat12\clcbpat12\cellx8332\trrh248\row}}}\pard\plain\sb132\fi792\cf1\f51\fs20\i\ql Operating Activities.\plain\cf1\f51\fs20\ql \~For the three months ended March 31, 2019, cash used for operating activities\plain\cf1\f51\fs20\ql resulted from our net loss as adjusted for non-cash items, including the decrease in deferred revenue, partially\plain\cf1\f51\fs20\ql offset by decreases in accounts receivable and inventories and a decrease in accounts payable. For the three\plain\cf1\f51\fs20\ql months ended March 31, 2018, cash used for operating activities resulted from our net loss as adjusted for\plain\cf1\f51\fs20\ql non-cash items, including the decrease in deferred revenue, in addition to an increase in inventories and a\plain\sa132\cf1\f51\fs20\ql decrease in accounts payable\par\pard\plain\fi792\cf1\f51\fs20\i\ql Investing Activities.\plain\cf1\f51\fs20\ql \~Cash used for investing activities for the three months ended March 31, 2019\plain\cf1\f51\fs20\ql resulted primarily from the net purchases from sales and maturities of our investment securities. Cash used or\plain\cf1\f51\fs20\ql provided by investing activities for the three months ended March 31, 2018 primarily related to the purchases and\plain\cf1\f51\fs20\ql maturities of investment securities. The fluctuations from period to period are due primarily to the timing of\plain\sa132\cf1\f51\fs20\ql purchases, sales and maturities of these investment securities\par\pard\plain\fi792\cf1\f51\fs20\i\ql Financing Activities.\plain\cf1\f51\fs20\ql \~Cash used for financing activities for the three months ended March 31, 2018\plain\sa132\cf1\f51\fs20\ql primarily related to our repayments of $4.6 million under the Senior Secured Notes\par\pard\plain\fi792\cf1\f51\fs20\ql We anticipate that our existing capital resources combined with anticipated future cash flows will be\plain\cf1\f51\fs20\ql sufficient to support our operating needs at least for the next twelve months. However, we anticipate that we may\plain\cf1\f51\fs20\ql require additional funding to service our existing debt, pursue development and commercial opportunities, which\plain\cf1\f51\fs20\ql could come in the form of a license, a co-development agreement, a merger or acquisition or in some other form,\plain\cf1\f51\fs20\ql or to create a pathway for centralized approval of the marketing authorization application for Qsymia in the EU,\plain\cf1\f51\fs20\ql conduct post-approval clinical studies for Qsymia, conduct non-clinical and clinical research and development\plain\cf1\f51\fs20\ql work to support regulatory submissions and applications for our current and future investigational drug candidates,\plain\cf1\f51\fs20\ql finance the costs involved in filing and prosecuting patent applications and enforcing or defending our patent\plain\cf1\f51\fs20\ql claims, if any, to fund operating expenses and manufacture quantities of our investigational drug candidates and to\plain\cf1\f51\fs20\ql make payments under our existing license agreements and supply agreements. Specifically, $181.4 million of our\plain\sa132\cf1\f51\fs20\ql convertible senior notes become due in May 2020.\par\pard\plain\fi792\cf1\f51\fs20\ql If we require additional capital, we may seek any required additional funding through collaborations,\plain\cf1\f51\fs20\ql public and private equity or debt financings, capital lease transactions or other available financing sources.\plain\cf1\f51\fs20\ql Additional financing may not be available on acceptable terms, or at all. If additional funds are raised by issuing\plain\cf1\f51\fs20\ql equity securities, substantial dilution to existing stockholders may result. If adequate funds are not available, we\plain\cf1\f51\fs20\ql may be required to delay, reduce the scope of or eliminate one or more of our commercialization or development\plain\cf1\f51\fs20\ql programs or obtain funds through collaborations with others that are on unfavorable terms or that may require us\plain\sa132\cf1\f51\fs20\ql to relinquish\par\pard\plain\cf1\f51\fs20\qc 31\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql rights to certain of our technologies, product candidates or products that we would otherwise seek to develop on\plain\sa132\cf1\f51\fs20\ql our own.\par\pard\plain\sa132\cf1\f51\fs20\b\i\ql Off-Balance Sheet Arrangements\par\pard\plain\fi792\cf1\f51\fs20\ql We have not entered into any off-balance sheet financing arrangements and have not established any\plain\cf1\f51\fs20\ql special purpose entities. We have not guaranteed any debt or commitments of other entities or entered into any\plain\sa132\cf1\f51\fs20\ql options on non-financial assets.\par\pard\plain\sa132\cf1\f51\fs20\b\i\ql Commitments and Contingencies\par\pard\plain\fi792\cf1\f51\fs20\ql We indemnify our officers and directors for certain events or occurrences pursuant to indemnification\plain\cf1\f51\fs20\ql agreements, subject to certain limits. We may be subject to contingencies that may arise from matters such as\plain\cf1\f51\fs20\ql product liability claims, legal proceedings, stockholder suits and tax matters and as such, we are unable to\plain\cf1\f51\fs20\ql estimate the potential exposure related to these indemnification agreements. We have not recognized any liabilities\plain\sa132\cf1\f51\fs20\ql relating to these agreements as of March 31, 2019.\par\pard\plain\sa132\cf1\f51\fs20\b\i\ql Contractual Obligations\par\pard\plain\fi792\cf1\f51\fs20\ql During the three months ended March 31, 2019, there were no material changes to our contractual\plain\cf1\f51\fs20\ql obligations described under Management\u8217?s Discussion and Analysis of Financial Condition and Results of\plain\cf1\f51\fs20\ql Operations contained in Part\~II,\~Item 7 of our Annual Report on Form\~10-K for our fiscal year ended\plain\cf1\f51\fs20\ql December\~31, 2018, filed with the SEC on February 26, 2019, other than the fulfillment of existing obligations in\plain\sa132\cf1\f51\fs20\ql the ordinary course of business.\par\pard\plain\fi792\cf1\f51\fs20\ql \~{\*\bkmkstart item_1_3_3}{\*\bkmkend item_1_3_3}{\*\bkmkstart _hlk5371953_12866592}{\*\bkmkend _hlk5371953_12866592}\par\pard\plain\cf1\f51\fs22\b\ql ITEM 3. QUANTITATIVE AND QUALITATIVE DISCLOSURES ABOUT MARKET RISK{\*\bkmkstart item3_quantitativeandqualitative}{\*\bkmkend item3_quantitativeandqualitative}\par\pard\plain\sa132\cf1\f51\fs20\b\ql Market and Interest Rate Risk\par\pard\plain\fi792\cf1\f51\fs20\ql In the normal course of business, our financial position is subject to a variety of risks, including market\plain\cf1\f51\fs20\ql risk associated with interest rate movements and foreign currency exchange risk. Our cash, cash equivalents and\plain\cf1\f51\fs20\ql available-for-sale securities as of March 31, 2019, consisted primarily of money market funds, U.S. Treasury\plain\cf1\f51\fs20\ql securities and corporate debt securities. Our cash is invested in accordance with an investment policy approved by\plain\cf1\f51\fs20\ql our Board of Directors that specifies the categories (money market funds, U.S. Treasury securities and debt\plain\cf1\f51\fs20\ql securities of U.S. government agencies, corporate bonds, asset-backed securities, and other securities), allocations,\plain\cf1\f51\fs20\ql and ratings of securities we may consider for investment. Currently, we have focused on investing in U.S.\plain\sa132\cf1\f51\fs20\ql Treasuries until market conditions improve.{\*\bkmkstart _hlk486514748_12866592}{\*\bkmkend _hlk486514748_12866592}\par\pard\plain\fi792\cf1\f51\fs20\ql Our market risk associated with interest rate movements is affected by changes in the general level of\plain\cf1\f51\fs20\ql U.S. interest rates, particularly because the majority of our investments are in short-term marketable debt\plain\cf1\f51\fs20\ql securities. The primary objective of our investment activities is to preserve principal. Some of the securities that\plain\cf1\f51\fs20\ql we invest in may be subject to market risk. This means that a change in prevailing interest rates may cause the\plain\cf1\f51\fs20\ql value of the investment to fluctuate. For example, if we purchase a security that was issued with a fixed interest\plain\cf1\f51\fs20\ql rate and the prevailing interest rate later rises, the value of our investment may decline. A hypothetical 100 basis\plain\cf1\f51\fs20\ql point increase in interest rates would reduce the fair value of our available-for-sale securities at March 31, 2019,\plain\cf1\f51\fs20\ql by approximately $0.5 million. In general, money market funds are not subject to market risk because the interest\plain\sa132\cf1\f51\fs20\ql paid on such funds fluctuates with the prevailing interest rate.\par\pard\plain\fi792\cf1\f51\fs20\ql A portion of our operations consist of revenues from outside of the United States, some of which are\plain\cf1\f51\fs20\ql denominated in Euros, and, as such, we have foreign currency exchange exposure for these revenues and\plain\cf1\f51\fs20\ql associated accounts receivable. Future fluctuations in the Euro exchange rate may impact our revenues and cash\plain\sa132\cf1\f51\fs20\ql flows.\par\pard\plain\fi792\cf1\f51\fs20\ql \~{\*\bkmkstart item_1_3_4}{\*\bkmkend item_1_3_4}\par\pard\plain\sb396\cf1\f51\fs22\b\ql ITEM 4. CONTROLS AND PROCEDURES{\*\bkmkstart item4_controlsandprocedures_1638}{\*\bkmkend item4_controlsandprocedures_1638}\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql (a.)\plain\cf1\f51\fs20\ql Evaluation of disclosure controls and procedures\plain\cf1\f51\fs20\ql . We maintain disclosure controls and procedures\plain\cf1\f51\fs20\ql that are designed to ensure that information required to be disclosed in our reports under the Securities Exchange\plain\cf1\f51\fs20\ql Act of 1934, as amended (the \u8220?Exchange Act\u8221?) is recorded, processed, summarized and reported\plain\cf1\f51\fs20\ql within the timelines specified in the rules\~and forms of the SEC and that such information is accumulated and\plain\sa132\cf1\f51\fs20\ql communicated to our\par\pard\plain\cf1\f51\fs20\qc 32\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql management, including our principal executive officer and principal financial officer, as appropriate, to allow\plain\cf1\f51\fs20\ql timely decisions regarding required disclosure. In designing and evaluating the disclosure controls and procedures,\plain\cf1\f51\fs20\ql management recognized that any controls and procedures, no matter how well designed and operated, can only\plain\cf1\f51\fs20\ql provide reasonable assurance of achieving the desired control objectives, and in reaching a reasonable level of\plain\cf1\f51\fs20\ql assurance, management necessarily was required to apply its judgment in evaluating the cost-benefit relationship\plain\sa132\cf1\f51\fs20\ql of possible controls and procedures.\par\pard\plain\fi792\cf1\f51\fs20\ql As required by SEC Rule\~13a-15(b), our management carried out an evaluation, under the supervision\plain\cf1\f51\fs20\ql and with the participation of our principal executive officer and our principal financial officer, of the effectiveness\plain\cf1\f51\fs20\ql of the design and operation of VIVUS\u8217?s disclosure controls and procedures as of the end of the period\plain\cf1\f51\fs20\ql covered by this Quarterly Report on Form\~10-Q. Based on the evaluation, our principal executive officer and\plain\sa132\cf1\f51\fs20\ql principal financial officer concluded that our disclosure controls and procedures were effective.\par\pard\plain\fi792\cf1\f51\fs20\ql (b.)\plain\cf1\f51\fs20\ql Changes in internal controls\plain\cf1\f51\fs20\ql . There was no change in our internal control over financial reporting\plain\cf1\f51\fs20\ql identified in connection with the evaluation required by Rules\~13a-15(d)\~and 15d-15(d)\~of the Exchange Act that\plain\cf1\f51\fs20\ql occurred during the period covered by this Quarterly Report on Form\~10-Q that has materially affected, or is\plain\sa132\cf1\f51\fs20\ql reasonably likely to materially affect, our internal control over financial reporting.\par\pard\plain\cf1\f51\fs20\qc 33\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}{\*\bkmkstart part_1_2_2}{\*\bkmkend part_1_2_2}\par\pard\plain\cf1\f51\fs22\b\qc PART\~II: OTHER INFORMATIO{\*\bkmkstart partiiotherinformation_991251_12}{\*\bkmkend partiiotherinformation_991251_12}\plain\cf1\f51\fs22\b\qc N\par\pard\plain\cf1\f51\fs20\qc \~{\*\bkmkstart item_1_3_5}{\*\bkmkend item_1_3_5}\par\pard\plain\cf1\f51\fs22\b\ql ITEM 1. LEGAL PROCEEDINGS{\*\bkmkstart item1_legalproceedings_163824_12}{\*\bkmkend item1_legalproceedings_163824_12}\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql The Company is not aware of any asserted or unasserted claims against it where it believes that an\plain\cf1\f51\fs20\ql unfavorable resolution would have an adverse material impact on the operations or financial position of the\plain\cf1\f51\fs20\ql Company.{\*\bkmkstart item_1_3_6}{\*\bkmkend item_1_3_6}\par\pard\plain\sb396\cf1\f51\fs22\b\ql ITEM 1A. RISK FACTORS{\*\bkmkstart item1a_riskfactors_163906_128665}{\*\bkmkend item1a_riskfactors_163906_128665}\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql Set forth below and elsewhere in this Quarterly Report on Form\~10-Q and in other documents we file\plain\cf1\f51\fs20\ql with the SEC, are risks and uncertainties that could cause actual results to differ materially from the results\plain\cf1\f51\fs20\ql contemplated by the forward-looking statements contained in this Quarterly Report on Form\~10-Q. These are not\plain\cf1\f51\fs20\ql the only risks and uncertainties facing VIVUS. Additional risks and uncertainties not presently known to us or\plain\sa132\cf1\f51\fs20\ql that we currently deem immaterial may also impair our business operations.\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql \~\par\pard\plain\sb264\sa132\cf1\f51\fs24\b\ql Risks Relating to our Business\par\pard\plain\sb264\cf1\f51\fs20\b\i\ql Our success will depend on our ability and that of our current or future collaborators to effectively and\plain\sa132\cf1\f51\fs20\b\i\ql profitably commercialize Qsymia\u174?, PANCREAZE and STENDRA/SPEDRA.\par\pard\plain\fi792\cf1\f51\fs20\ql Our success will depend on our ability and that of our current or future collaborators to effectively and\plain\sa132\cf1\f51\fs20\ql profitably commercialize Qsymia, PANCREAZE and STENDRA/SPEDRA, which will include our ability to:
\par\pard\plain
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql expand the use of Qsymia through targeted patient and physician education;\cell{
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\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql obtain marketing authorization by the EC for Qsymia in the EU;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql manage our alliances with MTPC, Menarini and Metuchen to help ensure the commercial success of\plain\intbl\sa132\cf1\f51\fs20\ql avanafil and the efficiency of our supply chain with Sanofi;\cell{
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\par\pard\plain
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\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql improve third-party payor coverage, lower out-of-pocket costs to patients with discount programs,\plain\intbl\sa132\cf1\f51\fs20\ql and obtain coverage for obesity under Medicare Part\~D;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql create market demand for Qsymia through patient and physician education, marketing and sales\plain\intbl\sa132\cf1\f51\fs20\ql activities;\cell{
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\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql achieve market acceptance and generate product sales;\cell{
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\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh900
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql comply with the post-marketing requirements established by FDA, including Qsymia\u8217?s Risk\plain\intbl\cf1\f51\fs20\ql Evaluation and Mitigation Strategy (\u8220?REMS\u8221?) any future changes to the REMS, and\plain\intbl\sa132\cf1\f51\fs20\ql any other requirements established by FDA in the future;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh900\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql efficiently conduct the post-marketing studies required by FDA;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql effectively and efficiently manage our sales force and commercial team for the promotion of Qsymia\plain\intbl\sa132\cf1\f51\fs20\ql and PANCREAZE;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql effectively increase the level of revenue for PANCREAZE;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql successfully assume the supply chain and commercial responsibilities for PANCREAZE;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql maintain a good relationship with the manufacturer of PANCREAZE;\cell{
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\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql ensure a sufficient level of PANCREAZE inventory;\cell{
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\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh900
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql ensure that the active pharmaceutical ingredients (\u8220?APIs\u8221?) for Qsymia and\plain\intbl\cf1\f51\fs20\ql STENDRA/SPEDRA and the finished products are manufactured in sufficient quantities and in\plain\intbl\sa132\cf1\f51\fs20\ql compliance with requirements of\cell{
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\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}
\par\pard\plain
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\pard\plain\intbl\li1188\cf1\f51\fs20\ql FDA and DEA and similar foreign regulatory agencies and with an acceptable quality and pricing\plain\intbl\li1188\sa132\cf1\f51\fs20\ql level in order to meet commercial demand;\cell{
{\trowd\cellx9529\trrh652\row}}}
\par\pard\plain
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql comply with other healthcare regulatory requirements;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql comply with state and federal controlled substances requirements; and\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql maintain and defend our patents, if challenged.\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382\row}}}\pard\plain\fi792\cf1\f51\fs20\ql If we are unable to successfully produce and commercialize Qsymia, PANCREAZE and/or\plain\cf1\f51\fs20\ql STENDRA/SPEDRA, our ability to generate product sales will be severely limited, which will have a material\plain\sa132\cf1\f51\fs20\ql adverse impact on our business, financial condition, and results of operations.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We have a new management team which may cause disruption in our business, which disruption could have a\plain\sa132\cf1\f51\fs20\b\i\ql materially adverse effect on our results of operations.\par\pard\plain\fi792\cf1\f51\fs20\ql In 2018, former executives of Willow Biopharma Inc. joined our management team, including John Amos\plain\cf1\f51\fs20\ql as our new Chief Executive Officer, M. Scott Oehrlein as our new Chief Operations Officer and Kenneth Suh as\plain\cf1\f51\fs20\ql our new President. If we are unable to successfully retain and integrate the new management team, our business\plain\sa132\cf1\f51\fs20\ql could be harmed.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We may not be able to successfully develop, launch and commercialize tacrolimus or any other potential future\plain\sa132\cf1\f51\fs20\b\i\ql development programs.\par\pard\plain\fi792\cf1\f51\fs20\ql We may not be able to effectively develop and profitably launch and commercialize tacrolimus or any\plain\sa132\cf1\f51\fs20\ql other potential future development programs which we may undertake, which will include our ability to:
\par\pard\plain
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql successfully develop a proprietary formulation of tacrolimus as a precursor to the clinical\plain\intbl\sa132\cf1\f51\fs20\ql development process;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
\par\pard\plain
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh1395\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql obtain regulatory approval and market authorization for tacrolimus in the U.S., EU and other\plain\intbl\sa132\cf1\f51\fs20\ql territories;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql develop, validate and maintain a commercially viable manufacturing process that is compliant with\plain\intbl\sa132\cf1\f51\fs20\ql current Good Manufacturing Practices (\u8220?cGMP\u8221?);\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh1148
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql establish and effectively manage a supply chain for tacrolimus and future development programs to\plain\intbl\cf1\f51\fs20\ql ensure that the API and the finished products are manufactured in sufficient quantities and in\plain\intbl\cf1\f51\fs20\ql compliance with regulatory requirements and with acceptable quality and pricing in order to meet\plain\intbl\sa132\cf1\f51\fs20\ql commercial demand;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh1148\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql effectively determine and manage the appropriate commercialization strategy;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql manage costs;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql achieve market acceptance by patients, the medical community and third-party payors and generate\plain\intbl\sa132\cf1\f51\fs20\ql product sales;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql effectively compete with other therapies;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql maintain a continued acceptable safety profile for tacrolimus following approval;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382\row}}}\pard\plain\cf1\f51\fs20\qc 35\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql comply with healthcare regulatory requirements; and\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql maintain and defend our patents, if challenged.\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382\row}}}\pard\plain\fi792\cf1\f51\fs20\ql If we are unable to successfully develop, produce, launch and commercialize tacrolimus, our ability to\plain\cf1\f51\fs20\ql generate product sales will be severely limited, which will have a material adverse impact on our business,\plain\sa132\cf1\f51\fs20\ql financial condition, and results of operations.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Changes to our strategic business plan may cause uncertainty regarding the future of our business, and may\plain\cf1\f51\fs20\b\i\ql adversely impact employee hiring and retention, our stock price, and our revenue, operating results, and\plain\sa132\cf1\f51\fs20\b\i\ql financial condition.\par\pard\plain\fi792\cf1\f51\fs20\ql In 2018, we initiated a new business strategy. These changes, and the potential for additional changes to\plain\cf1\f51\fs20\ql our management, organizational structure and strategic business plan, may cause speculation and uncertainty\plain\sa132\cf1\f51\fs20\ql regarding our future business strategy and direction. These changes may cause or result in:
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql disruption of our business or distraction of our employees and management;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql difficulty in recruiting, hiring, motivating and retaining talented and skilled personnel;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql stock price volatility; and\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh630
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql difficulty in negotiating, maintaining or consummating business or strategic relationships or\plain\intbl\sa132\cf1\f51\fs20\ql transactions.\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh630\row}}}\pard\plain\fi792\cf1\f51\fs20\ql If we are unable to mitigate these or other potential risks, our revenue, operating results and financial\plain\sa132\cf1\f51\fs20\ql condition may be adversely impacted.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We depend on our collaboration partners to gain or maintain approval, market, and sell Qsymia and\plain\sa132\cf1\f51\fs20\b\i\ql STENDRA/SPEDRA in their respective licensed territories.\par\pard\plain\fi792\cf1\f51\fs20\ql We rely on our collaboration partners, including Alvogen, Menarini and Metuchen, to successfully\plain\cf1\f51\fs20\ql commercialize Qsymia and STENDRA/SPEDRA in their respective territories, including obtaining any necessary\plain\cf1\f51\fs20\ql approvals and we cannot assure you that they will be successful. Our dependence on our collaborative\plain\cf1\f51\fs20\ql arrangements for the commercialization of Qsymia and STENDRA/SPEDRA, including our license agreements\plain\sa132\cf1\f51\fs20\ql with Alvogen, MTPC, Menarini and Metuchen, subject us to a number of risks, including the following:
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh900
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql we may not be able to control the commercialization of our drug products in the relevant territories,\plain\intbl\cf1\f51\fs20\ql including the amount, timing and quality of resources that our collaborators may devote to our drug\plain\intbl\sa132\cf1\f51\fs20\ql products;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh900\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh900
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql our collaborators may experience financial, regulatory or operational difficulties, which may impair\plain\intbl\cf1\f51\fs20\ql their ability to commercialize our drug products and fulfill their contractual obligations, including\plain\intbl\sa132\cf1\f51\fs20\ql satisfying their minimum purchase requirements;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh900\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql our collaborators may be required under the laws of the relevant territories to disclose our\plain\intbl\sa132\cf1\f51\fs20\ql confidential information or may fail to protect our confidential information;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql as a requirement of the collaborative arrangement, we may be required to relinquish important rights\plain\intbl\sa132\cf1\f51\fs20\ql with respect to our drug products, such as marketing and distribution rights;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh900
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql business combinations or significant changes in a collaborator\u8217?s business strategy may\plain\intbl\cf1\f51\fs20\ql adversely affect a collaborator\u8217?s willingness or ability to satisfactorily complete its\plain\intbl\sa132\cf1\f51\fs20\ql commercialization or other obligations under any collaborative arrangement;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh900\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql legal disputes or disagreements may occur with one or more of our collaborators or between our\plain\intbl\sa132\cf1\f51\fs20\ql collaborators and our suppliers or former collaborators;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh878
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql a collaborator could independently move forward with a competing investigational drug candidate\plain\intbl\cf1\f51\fs20\ql developed either independently or in collaboration with others, including with one of our competitors;\plain\intbl\sa132\cf1\f51\fs20\ql and\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh878\row}}}\pard\plain\cf1\f51\fs20\qc 36\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh1372
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql a collaborator could terminate the collaborative arrangement, which could negatively impact the\plain\intbl\cf1\f51\fs20\ql continued commercialization of our drug products. For example, in September 2016, Auxilium\plain\intbl\cf1\f51\fs20\ql terminated its agreement with us to commercialize STENDRA in the U.S. and Canada and, in March\plain\intbl\cf1\f51\fs20\ql 2017, Sanofi terminated its agreement with us to commercialize STENDRA/SPEDRA in Africa, the\plain\intbl\sa132\cf1\f51\fs20\ql Middle East, Turkey, and the CIS, including Russia.\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh1372\row}}}\pard\plain\fi792\cf1\f51\fs20\ql In addition, under our license agreement with MTPC, we are obligated to ensure that Menarini,\plain\cf1\f51\fs20\ql Metuchen, and any future sublicensees comply with the terms and conditions of our license agreement with\plain\cf1\f51\fs20\ql MTPC, and MTPC has the right to terminate our license rights to avanafil upon any uncured material breach.\plain\cf1\f51\fs20\ql Consequently, failure by Menarini, Metuchen, or any future sublicensees to comply with these terms and\plain\cf1\f51\fs20\ql conditions could result in the termination of our license rights to avanafil on a worldwide basis, which would\plain\sa132\cf1\f51\fs20\ql delay, impair, or preclude our ability to commercialize avanafil.\par\pard\plain\fi792\cf1\f51\fs20\ql If any of our collaboration partners fail to successfully commercialize Qsymia or STENDRA/SPEDRA or\plain\cf1\f51\fs20\ql fulfill their contractual obligations, our business may be negatively affected and we may receive limited or no\plain\sa132\cf1\f51\fs20\ql revenues under our agreements with them.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql There have been substantial changes to the Internal Revenue Code, some of which could have an adverse\plain\sa132\cf1\f51\fs20\b\i\ql effect on our business.\par\pard\plain\fi792\cf1\f51\fs20\ql The Tax Cuts and Jobs Act made substantial changes to the Internal Revenue Code, effective January 1,\plain\cf1\f51\fs20\ql 2018, some of which could have an adverse effect on our business. In addition to reducing the top corporate\plain\cf1\f51\fs20\ql income tax rate, changes that could impact our business in the future include (i) eliminating the ability to utilize\plain\cf1\f51\fs20\ql net operating losses (\u8220?NOLs\u8221?) to reduce income in prior tax years and limiting the utilization of\plain\cf1\f51\fs20\ql NOLs generated after December 31, 2017 to 80% of future taxable income, which could affect the timing of our\plain\cf1\f51\fs20\ql ability to utilize NOLs, and (ii) limiting the amount of business interest expenses that can be deducted to 30% of\plain\sa132\cf1\f51\fs20\ql earnings before interest, taxes, depreciation and amortization.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We currently rely on reports from our commercialization partners in determining our royalty revenues, and\plain\sa132\cf1\f51\fs20\b\i\ql these reports may be subject to adjustment or restatement, which may materially affect our financial results.\par\pard\plain\fi792\cf1\f51\fs20\ql We have royalty and milestone-bearing license and commercialization agreements for\plain\cf1\f51\fs20\ql STENDRA/SPEDRA with Menarini and, prior to October 1, 2016, with Auxilium. Also, on an interim basis, we\plain\cf1\f51\fs20\ql have agreements with affiliates of Janssen for the commercialization of PANCREASE MT in Canada. In\plain\cf1\f51\fs20\ql determining our royalty revenue from such agreements, we rely on our collaboration partners to provide\plain\cf1\f51\fs20\ql accounting estimates and reports for various discounts and allowances, including product returns. As a result of\plain\cf1\f51\fs20\ql fluctuations in inventory, allowances and buying patterns, actual sales and product returns of STENDRA/SPEDRA\plain\cf1\f51\fs20\ql in particular reporting periods may be affected, resulting in the need for our commercialization partners to adjust\plain\cf1\f51\fs20\ql or restate their accounting estimates set forth in the reports provided to us. Such adjustments or restatements may\plain\cf1\f51\fs20\ql materially and negatively affect our financial position and results of operations. Beginning October 1, 2016, we\plain\cf1\f51\fs20\ql ceased earning royalty revenue from U.S. sales as a result of the termination of our license and commercialization\plain\sa132\cf1\f51\fs20\ql agreement with Auxilium. Our new license agreement with Metuchen is royalty-free as to us.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql If we are unable to enter into agreements with collaborators for the territories that are not covered by our\plain\cf1\f51\fs20\b\i\ql existing commercialization agreements, our ability to commercialize Qsymia and STENDRA/SPEDRA in these\plain\sa132\cf1\f51\fs20\b\i\ql territories may be impaired.\par\pard\plain\fi792\cf1\f51\fs20\ql We intend to enter into collaborative arrangements or a strategic alliance with one or more\plain\cf1\f51\fs20\ql pharmaceutical partners or others to commercialize Qsymia and STENDRA/SPEDRA in territories that are not\plain\cf1\f51\fs20\ql covered by our current commercial collaboration agreements. For example, Qsymia is currently licensed for sale\plain\cf1\f51\fs20\ql only in the U.S. and we have a commercialization agreement to market it in South Korea. STENDRA/SPEDRA is\plain\cf1\f51\fs20\ql currently not marketed in Africa, the Middle East, Turkey, the CIS, Mexico and Central America. We may be\plain\cf1\f51\fs20\ql unable to enter into agreements with third parties for Qsymia and STENDRA/SPEDRA for these territories on\plain\cf1\f51\fs20\ql favorable terms or at all, which could delay, impair, or preclude our ability to commercialize Qsymia and\plain\sa132\cf1\f51\fs20\ql STENDRA/SPEDRA in these territories.\par\pard\plain\cf1\f51\fs20\qc 37\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Failure to obtain regulatory approval in foreign jurisdictions will prevent us from marketing our products\plain\sa132\cf1\f51\fs20\b\i\ql abroad.\par\pard\plain\fi792\cf1\f51\fs20\ql In order to market products in many foreign jurisdictions, we, or our partners, must obtain separate\plain\cf1\f51\fs20\ql regulatory approvals. Approval by FDA in the U.S. does not ensure approval by regulatory authorities in other\plain\cf1\f51\fs20\ql countries, and approval by one foreign regulatory authority does not ensure approval by regulatory authorities in\plain\cf1\f51\fs20\ql other foreign countries. For example, while our drug STENDRA/SPEDRA has been approved in both the U.S. and\plain\cf1\f51\fs20\ql the EU, our drug Qsymia has been approved in the U.S. but was denied a marketing authorization by the EC due\plain\cf1\f51\fs20\ql to concerns over the potential cardiovascular and central nervous system effects associated with long-term use,\plain\cf1\f51\fs20\ql teratogenic potential and use by patients for whom Qsymia would not have been indicated. We intend to seek\plain\cf1\f51\fs20\ql approval, either directly or through our collaboration partners, for Qsymia and STENDRA in other territories\plain\cf1\f51\fs20\ql outside the U.S. and the EU. However, we have had limited interactions with foreign regulatory authorities,\plain\cf1\f51\fs20\ql having relied in large part on third parties to lead any such interactions, and the approval procedures vary among\plain\cf1\f51\fs20\ql countries and can involve additional clinical testing. Foreign regulatory approvals may not be obtained, by us or\plain\cf1\f51\fs20\ql our collaboration partners responsible for obtaining approval, on a timely basis, or at all, for any of our products.\plain\cf1\f51\fs20\ql The failure to receive regulatory approvals in a foreign country would prevent us from marketing and\plain\cf1\f51\fs20\ql commercializing our products in that country, which could have a material adverse effect on our business,\plain\sa132\cf1\f51\fs20\ql financial condition and results of operations.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We, together with Alvogen, Menarini, Metuchen, Janssen and any potential future collaborators in certain\plain\cf1\f51\fs20\b\i\ql territories, intend to market Qsymia, PANCREAZE/PANCREASE and STENDRA/SPEDRA outside the U.S.,\plain\sa132\cf1\f51\fs20\b\i\ql which will subject us to risks related to conducting business internationally.\par\pard\plain\fi792\cf1\f51\fs20\ql We, through Alvogen, Menarini, Metuchen and any potential future collaborators in certain territories,\plain\cf1\f51\fs20\ql intend to manufacture, market, and distribute Qsymia, PANCREAZE/PANCREASE and STENDRA/SPEDRA\plain\cf1\f51\fs20\ql outside the U.S. Also, on an interim basis, we have agreements with affiliates of Janssen for the\plain\cf1\f51\fs20\ql commercialization of PANCREASE MT in Canada. We expect that we will be subject to additional risks related\plain\sa132\cf1\f51\fs20\ql to conducting business internationally, including:
\par\pard\plain
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh630\row}}}\pard\plain\cf1\f51\fs20\qc 38\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We have significant inventories on hand, and, in 2015, we recorded inventory impairment and commitment fees\plain\sa132\cf1\f51\fs20\b\i\ql totaling $29.5 million, primarily to write off excess inventory related to Qsymia.\par\pard\plain\fi792\cf1\f51\fs20\ql We maintain significant inventories and evaluate these inventories on a periodic basis for potential excess\plain\cf1\f51\fs20\ql and obsolescence. During the year ended December 31, 2015, we recognized total charges of $29.5 million,\plain\cf1\f51\fs20\ql primarily for Qsymia inventories on hand in excess of projected demand. The inventory impairment charges were\plain\cf1\f51\fs20\ql based on our analysis of the then-current Qsymia inventory on hand and remaining shelf life, in relation to our\plain\cf1\f51\fs20\ql projected demand for the product. The current FDA-approved commercial product shelf life for Qsymia is\plain\cf1\f51\fs20\ql 36\~months. STENDRA is approved in the U.S. and SPEDRA is approved in the EU for 48 months of commercial\plain\sa132\cf1\f51\fs20\ql product shelf life.\par\pard\plain\fi792\cf1\f51\fs20\ql Our write-down for excess and obsolete inventory is subjective and requires forecasting of the future\plain\cf1\f51\fs20\ql market demand for our products. Forecasting demand for Qsymia, a drug in the obesity market in which there had\plain\cf1\f51\fs20\ql been no new FDA-approved medications in over a decade prior to 2012, and for which reimbursement from\plain\cf1\f51\fs20\ql third-party payors had previously been non-existent, has been difficult. PANCREAZE has a short shelf life and\plain\cf1\f51\fs20\ql forecasting both the amounts and the timing of demand for PANCREAZE is difficult. Forecasting demand for\plain\cf1\f51\fs20\ql STENDRA/SPEDRA, a drug that is new to a crowded and competitive market and has limited sales history, is\plain\cf1\f51\fs20\ql also difficult. We will continue to evaluate our inventories on a periodic basis. The value of our inventories could\plain\cf1\f51\fs20\ql be impacted if actual sales differ significantly from our estimates of future demand, if any significant\plain\cf1\f51\fs20\ql unanticipated changes in future product demand or market conditions occur\plain\cf1\f51\fs24\ql \~\plain\cf1\f51\fs20\ql or if our collaborators fail to satisfy\plain\cf1\f51\fs20\ql their minimum purchase obligations. Any of these events, or a combination thereof, could result in additional\plain\sa132\cf1\f51\fs20\ql inventory write-downs in future periods, which could be material.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Our failure to manage and maintain our distribution network for Qsymia or compliance with certain\plain\cf1\f51\fs20\b\i\ql requirements, including requirements of the Qsymia REMS program, could compromise the commercialization\plain\sa132\cf1\f51\fs20\b\i\ql of this product.\par\pard\plain\fi792\cf1\f51\fs20\ql We rely on Cardinal Health 105,\~Inc. (\u8220?Cardinal Health\u8221?) a third-party distribution and\plain\cf1\f51\fs20\ql supply-chain management company, to warehouse Qsymia and distribute it to the certified home delivery\plain\cf1\f51\fs20\ql pharmacies and wholesalers that then distribute Qsymia directly to patients and certified retail pharmacies.\plain\cf1\f51\fs20\ql Cardinal Health provides billing, collection and returns services. Cardinal Health is our exclusive supplier of\plain\cf1\f51\fs20\ql distribution logistics services, and accordingly we depend on Cardinal Health to satisfactorily perform its\plain\sa132\cf1\f51\fs20\ql obligations under our agreement with them, including compliance with relevant state and federal laws.\par\pard\plain\fi792\cf1\f51\fs20\ql Pursuant to the REMS program applicable to Qsymia, our distribution network is through a small number\plain\cf1\f51\fs20\ql of certified home delivery pharmacies and wholesalers and through a broader network of certified retail\plain\cf1\f51\fs20\ql pharmacies. We have contracted through a third-party vendor to certify the retail pharmacies and collect required\plain\cf1\f51\fs20\ql data to support the Qsymia REMS program. In addition to providing services to support the distribution and use\plain\cf1\f51\fs20\ql of Qsymia, each of the certified pharmacies has agreed to comply with the REMS program requirements and,\plain\cf1\f51\fs20\ql through our third-party data collection vendor, will provide us with the necessary patient and prescribing\plain\cf1\f51\fs20\ql healthcare provider (\u8220?HCP\u8221?) data. In addition, we have contracted with third-party data warehouses\plain\cf1\f51\fs20\ql to store this patient and HCP data and report it to us. We rely on this third-party data in order to recognize\plain\cf1\f51\fs20\ql revenue and comply with the REMS requirements for Qsymia, such as data analysis. This distribution and data\plain\cf1\f51\fs20\ql collection network requires significant coordination with our sales and marketing, finance, regulatory and medical\plain\sa132\cf1\f51\fs20\ql affairs teams, in light of the REMS requirements applicable to Qsymia.\par\pard\plain\fi792\cf1\f51\fs20\ql We rely on the certified pharmacies to implement a number of safety procedures and report certain\plain\cf1\f51\fs20\ql information to our third-party REMS data collection vendor. Failure to maintain our contracts with Cardinal\plain\cf1\f51\fs20\ql Health, our third-party REMS data collection vendor, or with the third-party data warehouses, or the inability or\plain\cf1\f51\fs20\ql failure of any of them to adequately perform under our contracts with them, could negatively impact the\plain\cf1\f51\fs20\ql distribution of Qsymia, or adversely affect our ability to comply with the REMS applicable to Qsymia. Failure to\plain\cf1\f51\fs20\ql comply with a requirement of an approved REMS can result in, among other things, civil penalties, imposition of\plain\cf1\f51\fs20\ql additional burdensome REMS requirements, suspension or revocation of regulatory approval and criminal\plain\cf1\f51\fs20\ql prosecution. Failure to coordinate financial systems could also negatively impact our ability to accurately report\plain\cf1\f51\fs20\ql and forecast product revenue. If we are unable to effectively manage the distribution and data collection process,\plain\cf1\f51\fs20\ql sales of Qsymia could be severely compromised and our business, financial condition and results of operations\plain\sa132\cf1\f51\fs20\ql would be harmed.\par\pard\plain\cf1\f51\fs20\qc 39\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql If we are unable to maintain or enter into agreements with suppliers or our suppliers fail to supply us with the\plain\cf1\f51\fs20\b\i\ql APIs for our products, bulk products or finished products or if we rely on single-source suppliers, we may\plain\sa132\cf1\f51\fs20\b\i\ql experience delays in commercializing our products.\par\pard\plain\fi792\cf1\f51\fs20\ql We purchase all supplies related to PANCREAZE from a single manufacturer. We currently do not have\plain\cf1\f51\fs20\ql supply agreements for topiramate or phentermine, which are the APIs used in Qsymia. We cannot guarantee that\plain\cf1\f51\fs20\ql we will be successful in maintaining or entering into supply agreements on reasonable terms or at all or that we\plain\cf1\f51\fs20\ql or our suppliers will be able to obtain or maintain the necessary regulatory approvals or state and federal\plain\sa132\cf1\f51\fs20\ql controlled substances registrations for current or potential future suppliers in a timely manner or at all.\par\pard\plain\fi792\cf1\f51\fs20\ql We anticipate that we will continue to rely on single-source suppliers for PANCREAZE, phentermine\plain\cf1\f51\fs20\ql and topiramate for the foreseeable future. Any production shortfall on the part of our suppliers that impairs the\plain\cf1\f51\fs20\ql supply of phentermine, topiramate or PANCREAZE could have a material adverse effect on our business,\plain\cf1\f51\fs20\ql financial condition and results of operations. If we are unable to obtain a sufficient quantity of these compounds,\plain\cf1\f51\fs20\ql there could be a substantial delay in successfully developing a second source supplier. An inability to continue to\plain\cf1\f51\fs20\ql source product from any of these suppliers, which could be due to regulatory actions or requirements affecting the\plain\cf1\f51\fs20\ql supplier, adverse financial or other strategic developments experienced by a supplier, labor disputes or shortages,\plain\cf1\f51\fs20\ql unexpected demands or quality issues, could adversely affect our ability to satisfy demand for Qsymia or\plain\cf1\f51\fs20\ql PANCREAZE, which could adversely affect our product sales and operating results materially, which could\plain\sa132\cf1\f51\fs20\ql significantly harm our business.\par\pard\plain\fi792\cf1\f51\fs20\ql We currently do not have any manufacturing facilities and intend to continue to rely on third parties for\plain\cf1\f51\fs20\ql the supply of the API and tablets, as well as for the supply of starting materials. However, we cannot be certain\plain\cf1\f51\fs20\ql that we or our suppliers will be able to obtain or maintain the necessary regulatory approvals or registrations for\plain\sa132\cf1\f51\fs20\ql these suppliers in a timely manner or at all.\par\pard\plain\fi792\cf1\f51\fs20\ql Sanofi Chimie manufactures and supplies the API for avanafil on an exclusive basis in the U.S. and other\plain\cf1\f51\fs20\ql territories and on a semi-exclusive basis in Europe, including the EU, Latin America and other territories. Sanofi\plain\cf1\f51\fs20\ql Winthrop Industrie manufactures and supplies the avanafil tablets on an exclusive basis in the U.S. and other\plain\cf1\f51\fs20\ql territories and on a semi-exclusive basis in Europe, including the EU, Latin America and other territories. We\plain\cf1\f51\fs20\ql have entered into supply agreements with Menarini and Metuchen under which we are obligated to supply them\plain\cf1\f51\fs20\ql with avanafil tablets. If we are unable to maintain a reliable supply of avanafil API from Sanofi Chimie or tablets\plain\cf1\f51\fs20\ql from Sanofi Winthrop Industrie or if our collaborators fail to satisfy their minimum purchase obligations, we may\plain\cf1\f51\fs20\ql be unable to satisfy our obligations under these supply agreements in a timely manner or at all, and we may, as a\plain\sa132\cf1\f51\fs20\ql result, be in breach of one or both of these agreements.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We have in-licensed all or a portion of the rights to Qsymia, PANCREAZE and STENDRA from third parties.\plain\sa132\cf1\f51\fs20\b\i\ql If we default on any of our material obligations under those licenses, we could lose rights to these drugs.\par\pard\plain\fi792\cf1\f51\fs20\ql We have in-licensed and otherwise contracted for rights to Qsymia, PANCREAZE and STENDRA, and\plain\cf1\f51\fs20\ql we may enter into similar licenses in the future. Under the relevant agreements, we are subject to\plain\cf1\f51\fs20\ql commercialization, development, supply, sublicensing, royalty, insurance and other obligations. If we fail to\plain\cf1\f51\fs20\ql comply with any of these requirements, or otherwise breach these license agreements, the licensor may have the\plain\cf1\f51\fs20\ql right to terminate the license in whole or to terminate the exclusive nature of the license. Loss of any of these\plain\sa132\cf1\f51\fs20\ql licenses or the exclusive rights provided therein could harm our financial condition and operating results.\par\pard\plain\fi792\cf1\f51\fs20\ql In particular, we license the rights to avanafil from MTPC, and we have certain obligations to MTPC in\plain\cf1\f51\fs20\ql connection with that license. We licensed the rights to PANCREAZE from Janssen. We license the rights to\plain\cf1\f51\fs20\ql Qsymia from Dr.\~Najarian. We believe we are in compliance with the material terms of our license agreements\plain\cf1\f51\fs20\ql with MTPC, Janssen and Dr.\~Najarian. However, there can be no assurance that this compliance will continue or\plain\cf1\f51\fs20\ql that the licensors will not have a differing interpretation of the material terms of the agreements. If the license\plain\cf1\f51\fs20\ql agreements were terminated early or if the terms of the licenses were contested for any reason, it would have a\plain\cf1\f51\fs20\ql material adverse impact on our ability to commercialize products subject to these agreements, our ability to raise\plain\cf1\f51\fs20\ql funds to finance our operations, our stock price and our overall financial condition. The monetary and disruption\plain\sa132\cf1\f51\fs20\ql costs of any disputes involving our agreements could be significant despite rulings in our favor.\par\pard\plain\cf1\f51\fs20\qc 40\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Our ability to gain and increase market acceptance and generate revenues will be subject to a variety of risks,\plain\sa132\cf1\f51\fs20\b\i\ql many of which are out of our control.\par\pard\plain\fi792\cf1\f51\fs20\ql Qsymia, PANCREAZE and STENDRA/SPEDRA may not gain or increase market acceptance among\plain\cf1\f51\fs20\ql physicians, patients, healthcare payors or the medical community. We believe that the degree of market acceptance\plain\sa132\cf1\f51\fs20\ql and our ability to generate revenues from such drugs will depend on a number of factors, including:
\par\pard\plain
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql our ability to obtain marketing authorization by the EC for Qsymia in the EU;\cell{
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\par\pard\plain
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh630\row}}}\pard\plain\fi792\cf1\f51\fs20\ql Our drugs may fail to achieve market acceptance or generate significant revenue to achieve sustainable\plain\cf1\f51\fs20\ql profitability. In addition, our efforts to educate the medical community and third-party payors on the safety and\plain\sa132\cf1\f51\fs20\ql benefits of our drugs may require significant resources and may not be successful.\par\pard\plain\cf1\f51\fs20\qc 41\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We are required to complete post-approval studies and trials mandated by FDA for Qsymia, and such studies\plain\cf1\f51\fs20\b\i\ql and trials are expected to be costly and time consuming. If the results of these studies and trials reveal\plain\cf1\f51\fs20\b\i\ql unacceptable safety risks, Qsymia may be subject to additional REMS restrictions or required to be withdrawn\plain\sa132\cf1\f51\fs20\b\i\ql from the market.\par\pard\plain\fi792\cf1\f51\fs20\ql Upon receiving approval to market Qsymia, FDA required that we perform additional studies of Qsymia\plain\cf1\f51\fs20\ql including a cardiovascular outcome trial (\u8220?CVOT\u8221?). We estimate the cost of a CVOT as currently\plain\cf1\f51\fs20\ql designed to be between $180.0 million and $220.0 million incurred over a period of approximately five years. We\plain\cf1\f51\fs20\ql have held several meetings with FDA to discuss alternative strategies for obtaining cardiovascular\plain\cf1\f51\fs20\ql (\u8220?CV\u8221?) outcomes data that would be substantially more feasible and that ensure timely collection of\plain\cf1\f51\fs20\ql data to better inform on the CV safety of Qsymia. In September 2013, we submitted a request to the EMA for\plain\cf1\f51\fs20\ql Scientific Advice, a procedure similar to the U.S. Special Protocol Assessment process, regarding use of a\plain\cf1\f51\fs20\ql pre-specified interim analysis from the CVOT to assess the long-term treatment effect of Qsymia on the\plain\cf1\f51\fs20\ql incidence of major adverse cardiovascular events in overweight and obese subjects with confirmed cardiovascular\plain\cf1\f51\fs20\ql disease. Our request was to allow this interim analysis to support the resubmission of an application for a\plain\cf1\f51\fs20\ql marketing authorization for Qsymia for treatment of obesity in accordance with the EU centralized marketing\plain\cf1\f51\fs20\ql authorization procedure. We received feedback in 2014 from the EMA and the various competent authorities of\plain\cf1\f51\fs20\ql the EU Member States. We worked with cardiovascular and epidemiology experts in exploring alternate solutions\plain\cf1\f51\fs20\ql to demonstrate the long-term cardiovascular safety of Qsymia. After reviewing a summary of Phase 3 data\plain\cf1\f51\fs20\ql relevant to CV risk and post-marketing safety data, the cardiology experts noted that they believe there was an\plain\cf1\f51\fs20\ql absence of an overt CV risk signal and indicated that they did not believe a randomized placebo-controlled\plain\cf1\f51\fs20\ql CVOT would provide additional information regarding the CV risk of Qsymia. The epidemiology experts\plain\cf1\f51\fs20\ql maintained that a well-conducted retrospective observational study could provide data to further inform on\plain\cf1\f51\fs20\ql potential CV risk. We worked with the expert group to develop a protocol and conduct a retrospective\plain\cf1\f51\fs20\ql observational study. We have submitted information from this study to FDA in support of a currently pending\plain\cf1\f51\fs20\ql supplemental New Drug Application (\u8220?sNDA\u8221?) seeking changes to the Qsymia label. Although we\plain\cf1\f51\fs20\ql and consulted experts believe there is no overt signal for CV risk to justify the CVOT, we are committed to\plain\cf1\f51\fs20\ql working with FDA to reach a resolution that provides FDA with additional CV safety data. There is no assurance,\plain\sa132\cf1\f51\fs20\ql however, that FDA will accept any measures short of those specified in the CVOT to satisfy this requirement.\par\pard\plain\fi792\cf1\f51\fs20\ql As for the EU, even if FDA were to determine that a CVOT is no longer necessary, there would be no\plain\cf1\f51\fs20\ql assurance that the EMA would reach the same conclusion. There can be no assurance that we will be successful\plain\cf1\f51\fs20\ql in obtaining FDA or EMA agreement that we have demonstrated the long-term cardiovascular safety of Qsymia.\plain\cf1\f51\fs20\ql Furthermore, there can be no assurance that FDA or EMA will not request or require us to provide additional\plain\sa132\cf1\f51\fs20\ql information or undertake additional preclinical studies and clinical trials or retrospective observational studies.\par\pard\plain\fi792\cf1\f51\fs20\ql In addition to these studies, FDA may also require us to perform other lengthy post-approval studies or\plain\cf1\f51\fs20\ql trials, for which we would have to expend significant additional resources, which could have an adverse effect on\plain\cf1\f51\fs20\ql our operating results, financial condition and stock price. Failure to comply with the applicable regulatory\plain\cf1\f51\fs20\ql requirements, including the completion of post-marketing studies and trials, can result in, among other things,\plain\cf1\f51\fs20\ql civil monetary penalties, suspensions of regulatory approvals, operating restrictions and criminal prosecution. The\plain\cf1\f51\fs20\ql restriction, suspension or revocation of regulatory approvals or any other failure to comply with regulatory\plain\cf1\f51\fs20\ql requirements could have a material adverse effect on our business, financial condition, results of operations and\plain\cf1\f51\fs20\ql stock price. We have not complied with all the regulatory timelines for the required post-marketing trials and\plain\sa132\cf1\f51\fs20\ql studies, and this may be considered a violation of the statute if FDA does not find good cause.\par\pard\plain\sb528\sa132\cf1\f51\fs20\b\i\ql We depend upon consultants and outside contractors extensively in important roles within our company.\par\pard\plain\fi792\cf1\f51\fs20\ql We outsource many key functions of our business and therefore rely on a substantial number of\plain\cf1\f51\fs20\ql consultants, and we will need to be able to effectively manage these consultants to ensure that they successfully\plain\cf1\f51\fs20\ql carry out their contractual obligations and meet expected deadlines. However, if we are unable to effectively\plain\cf1\f51\fs20\ql manage our outsourced activities or if the quality or accuracy of the services provided by consultants is\plain\cf1\f51\fs20\ql compromised for any reason, our regulatory obligations, clinical trials or other development activities may be\plain\cf1\f51\fs20\ql extended, delayed or terminated, and we may not be able to complete our post-approval clinical trials or other\plain\cf1\f51\fs20\ql development activities for Qsymia, PANCREAZE and STENDRA, obtain regulatory approval for our future\plain\cf1\f51\fs20\ql investigational drug candidates, successfully commercialize our approved drugs or otherwise advance our business.\plain\cf1\f51\fs20\ql There can be no assurance that we will be able to manage our existing consultants or find other competent outside\plain\sa132\cf1\f51\fs20\ql contractors and consultants on commercially reasonable terms, or at all.\par\pard\plain\cf1\f51\fs20\qc 42\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Qsymia is a combination of two active ingredient drug products approved individually by FDA that are\plain\cf1\f51\fs20\b\i\ql commercially available and marketed by other companies, although the specific dose strengths differ. As a\plain\cf1\f51\fs20\b\i\ql result, Qsymia may be subject to substitution by prescribing physicians, or by pharmacists, with individual\plain\sa132\cf1\f51\fs20\b\i\ql drugs contained in the Qsymia formulation, which would adversely affect our business.\par\pard\plain\fi792\cf1\f51\fs20\ql Although Qsymia is a once-a-day, proprietary extended-release formulation, both of the approved APIs\plain\cf1\f51\fs20\ql (phentermine and topiramate) that are combined to produce Qsymia are commercially available as drug products\plain\cf1\f51\fs20\ql at prices that together are lower than the price at which we sell Qsymia. In addition, the distribution and sale of\plain\cf1\f51\fs20\ql these drug products is not limited under a REMS program, as is the case with Qsymia. Further, the individual\plain\cf1\f51\fs20\ql drugs contained in the Qsymia formulation are available in retail pharmacies. We cannot be sure that physicians\plain\cf1\f51\fs20\ql will view Qsymia as sufficiently superior to a treatment regimen of Qsymia\u8217?s individual APIs to justify the\plain\cf1\f51\fs20\ql significantly higher cost for Qsymia, and they may prescribe the individual generic drugs already approved and\plain\cf1\f51\fs20\ql marketed by other companies instead of our combination drug. Although our U.S. and European patents contain\plain\cf1\f51\fs20\ql composition, product formulation and method-of-use claims that we believe protect Qsymia, these patents may be\plain\cf1\f51\fs20\ql ineffective or impractical to prevent physicians from prescribing, or pharmacists from dispensing, the individual\plain\cf1\f51\fs20\ql generic constituents marketed by other companies instead of our combination drug. Phentermine and topiramate\plain\cf1\f51\fs20\ql are currently available in generic form, although the doses used in Qsymia are currently not available. In the third\plain\cf1\f51\fs20\ql quarter of 2013, Supernus Pharmaceuticals,\~Inc. launched Trokendi XR\u8482? and in the second quarter of 2014,\plain\cf1\f51\fs20\ql Upsher-Smith Laboratories,\~Inc. launched Qudexy\u8482?. Both products provide an extended-release formulation\plain\cf1\f51\fs20\ql of the generic drug topiramate that is indicated for certain types of seizures and migraines. Topiramate is not\plain\cf1\f51\fs20\ql approved for obesity treatment, and phentermine is only approved for short-term treatment of obesity. However,\plain\cf1\f51\fs20\ql because the price of Qsymia is significantly higher than the prices of the individual components as marketed by\plain\cf1\f51\fs20\ql other companies, physicians may have a greater incentive to write prescriptions for the individual components\plain\cf1\f51\fs20\ql outside of their approved indication, instead of for our combination drug, and this may limit how we price or\plain\cf1\f51\fs20\ql market Qsymia. Similar concerns could also limit the reimbursement amounts private health insurers or\plain\cf1\f51\fs20\ql government agencies in the U.S. are prepared to pay for Qsymia, which could also limit market and patient\plain\sa132\cf1\f51\fs20\ql acceptance of our drug and could negatively impact our revenues.\par\pard\plain\fi792\cf1\f51\fs20\ql In many regions and countries where we may plan to market Qsymia, the pricing of reimbursed\plain\cf1\f51\fs20\ql prescription drugs is controlled by the government or regulatory agencies. The government or regulatory agencies\plain\cf1\f51\fs20\ql in these countries could determine that the pricing for Qsymia should be based on prices for its APIs when sold\plain\cf1\f51\fs20\ql separately, rather than allowing us to market Qsymia at a premium as a new drug, which could limit our pricing\plain\sa132\cf1\f51\fs20\ql of Qsymia and negatively impact our revenues.\par\pard\plain\fi792\cf1\f51\fs20\ql Once an applicant receives authorization to market a medicinal product in an EU Member State, through\plain\cf1\f51\fs20\ql any application route, the applicant is required to engage in pricing discussions and negotiations with a separate\plain\cf1\f51\fs20\ql pricing authority in that country. The legislators, policymakers and healthcare insurance funds in the EU Member\plain\cf1\f51\fs20\ql States continue to propose and implement cost-containing measures to keep healthcare costs down, due in part to\plain\cf1\f51\fs20\ql the attention being paid to healthcare cost containment and other austerity measures in the EU. Certain of these\plain\cf1\f51\fs20\ql changes could impose limitations on the prices pharmaceutical companies are able to charge for their products.\plain\cf1\f51\fs20\ql The amounts of reimbursement available from governmental agencies or third-party payors for these products\plain\cf1\f51\fs20\ql may increase the tax obligations on pharmaceutical companies such as ours, or may facilitate the introduction of\plain\cf1\f51\fs20\ql generic competition with respect to our products. Furthermore, an increasing number of EU Member States and\plain\cf1\f51\fs20\ql other foreign countries use prices for medicinal products established in other countries as \u8220?reference\plain\cf1\f51\fs20\ql prices\u8221? to help determine the price of the product in their own territory. Consequently, a downward trend in\plain\cf1\f51\fs20\ql the price of medicinal products in some countries could contribute to similar downward trends elsewhere. In\plain\cf1\f51\fs20\ql addition, the ongoing budgetary difficulties faced by a number of EU Member States, including Greece and Spain,\plain\cf1\f51\fs20\ql have led and may continue to lead to substantial delays in payment and payment partially with government bonds\plain\cf1\f51\fs20\ql rather than cash for medicinal products, which could negatively impact our revenues and profitability. Moreover,\plain\cf1\f51\fs20\ql in order to obtain reimbursement of our medicinal products in some countries, including some EU Member States,\plain\cf1\f51\fs20\ql we may be required to conduct clinical trials that compare the cost-effectiveness of our products to other\plain\cf1\f51\fs20\ql available therapies. There can be no assurance that our medicinal products will obtain favorable reimbursement\plain\cf1\f51\fs20\ql status in any country. For more information concerning pricing and reimbursement of medicinal products in the\plain\cf1\f51\fs20\ql EU and, in particular, the impact of HTA, please refer to the section titled \u8220?Government Regulation -\plain\sa132\cf1\f51\fs20\ql Coverage and Reimbursement.\u8221?\par\pard\plain\cf1\f51\fs20\qc 43\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql If we become subject to product liability claims, we may be required to pay damages that exceed our insurance\plain\sa132\cf1\f51\fs20\b\i\ql coverage.\par\pard\plain\fi792\cf1\f51\fs20\ql Qsymia, PANCREAZE and STENDRA/SPEDRA, like all pharmaceutical products, are subject to\plain\cf1\f51\fs20\ql heightened risk for product liability claims due to inherent potential side effects. For example, because topiramate,\plain\cf1\f51\fs20\ql a component of Qsymia, may increase the risk of congenital malformation in infants exposed to topiramate during\plain\cf1\f51\fs20\ql the first trimester of pregnancy and also may increase the risk of suicidal thoughts and behavior, such risks may\plain\cf1\f51\fs20\ql be associated with Qsymia as well. Other potential risks involving Qsymia may include, but are not limited to, an\plain\cf1\f51\fs20\ql increase in resting heart rate, acute angle closure glaucoma, cognitive and psychiatric adverse events, metabolic\plain\cf1\f51\fs20\ql acidosis, an increase in serum creatinine, hypoglycemia in patients with type\~2 diabetes, kidney stone formation,\plain\sa132\cf1\f51\fs20\ql decreased sweating and hypokalemia, or lower-than-normal amount of potassium in the blood.\par\pard\plain\fi792\cf1\f51\fs20\ql Although we have obtained product liability insurance coverage for Qsymia, we may be unable to\plain\cf1\f51\fs20\ql maintain this product liability coverage for Qsymia or any other of our approved drugs in amounts or scope\plain\cf1\f51\fs20\ql sufficient to provide us with adequate coverage against all potential risks. A product liability claim in excess of,\plain\cf1\f51\fs20\ql or excluded from, our insurance coverage would have to be paid out of cash reserves and could have a material\plain\cf1\f51\fs20\ql adverse effect upon our business, financial condition and results of operations. Product liability insurance is\plain\cf1\f51\fs20\ql expensive even with large self-insured retentions or deductibles, difficult to maintain, and current or increased\plain\sa132\cf1\f51\fs20\ql coverage may not be available on acceptable terms, if at all.\par\pard\plain\fi792\cf1\f51\fs20\ql In addition, we develop, test, and manufacture through third parties, approved drugs and future\plain\cf1\f51\fs20\ql investigational drug candidates that are used by humans. We face an inherent risk of product liability exposure\plain\cf1\f51\fs20\ql related to the testing of our approved drugs and investigational drug candidates in clinical trials. An individual\plain\cf1\f51\fs20\ql may bring a liability claim against us if one of our approved drugs or future investigational drug candidates\plain\sa132\cf1\f51\fs20\ql causes, or merely appears to have caused, an injury.\par\pard\plain\fi792\cf1\f51\fs20\ql If we cannot successfully defend ourselves against a product liability claim, whether involving Qsymia,\plain\cf1\f51\fs20\ql PANCREAZE, STENDRA/SPEDRA or a future investigational drug candidate or product, we may incur\plain\sa132\cf1\f51\fs20\ql substantial liabilities. Regardless of merit or eventual outcome, liability claims may result in:
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382\row}}}\pard\plain\fi792\cf1\f51\fs20\ql Damages awarded in a product liability action could be substantial and could have a negative impact on\plain\cf1\f51\fs20\ql our financial condition. Whether or not we were ultimately successful in product liability litigation, such litigation\plain\cf1\f51\fs20\ql would consume substantial amounts of our financial and managerial resources, and might result in adverse\plain\cf1\f51\fs20\ql publicity, all of which would impair our business. In addition, product liability claims could result in an FDA\plain\cf1\f51\fs20\ql investigation of the safety or efficacy of our product, our third-party manufacturing processes and facilities, or our\plain\cf1\f51\fs20\ql marketing programs. An FDA investigation could also potentially lead to a recall of our products or more serious\plain\cf1\f51\fs20\ql enforcement actions, limitations on the indications for which they may be used, or suspension or withdrawal of\plain\sa132\cf1\f51\fs20\ql approval.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql The markets in which we operate are highly competitive and we may be unable to compete successfully against\plain\sa132\cf1\f51\fs20\b\i\ql new entrants or established companies.\par\pard\plain\fi792\cf1\f51\fs20\ql Competition in the pharmaceutical and medical products industries is intense and is characterized by\plain\cf1\f51\fs20\ql costly and extensive research efforts and rapid technological progress. We are aware of several pharmaceutical\plain\cf1\f51\fs20\ql companies also actively engaged in the development of therapies for the treatment of obesity and erectile\plain\cf1\f51\fs20\ql dysfunction. Many of these companies have substantially greater research and development capabilities as well as\plain\cf1\f51\fs20\ql substantially greater marketing, financial and human resources than we do. Some of the drugs that may compete\plain\cf1\f51\fs20\ql with Qsymia may not have a REMS requirement and the accompanying complexities such a requirement presents.\plain\sa132\cf1\f51\fs20\ql Our competitors may\par\pard\plain\cf1\f51\fs20\qc 44\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql develop technologies and products that are more effective than those we are currently marketing or researching\plain\sa132\cf1\f51\fs20\ql and developing. Such developments could render Qsymia and STENDRA less competitive or possibly obsolete.\par\pard\plain\fi792\cf1\f51\fs20\ql Qsymia for the treatment of chronic weight management competes with several approved anti-obesity\plain\cf1\f51\fs20\ql drugs including, Belviq\plain\cf1\f51\fs10\ql \u174?\plain\cf1\f51\fs20\ql (lorcaserin), marketed by Eisai Inc., Eisai Co.,\~Ltd.\u8217?s U.S. subsidiary;\plain\cf1\f51\fs20\ql Xenical\plain\cf1\f51\fs10\ql \u174?\plain\cf1\f51\fs20\ql (orlistat), marketed by Roche; alli\plain\cf1\f51\fs10\ql \u174?\plain\cf1\f51\fs20\ql , the over-the-counter version of orlistat, marketed by\plain\cf1\f51\fs20\ql GlaxoSmithKline; Contrave\plain\cf1\f51\fs10\ql \u174?\plain\cf1\f51\fs20\ql (naltrexone/bupropion), Nalpropion Pharmaceuticals, Inc.\u8217?s anti-obesity\plain\cf1\f51\fs20\ql compound; and Saxenda\plain\cf1\f51\fs10\ql \u174?\plain\cf1\f51\fs20\ql (liraglutide), an anti-obesity compound marketed by Novo Nordisk A/S. Agents that\plain\cf1\f51\fs20\ql have been approved for type 2 diabetes that have demonstrated weight loss in clinical studies may also compete\plain\cf1\f51\fs20\ql with Qsymia. These include Farxiga\u8482? (dapagliflozin) from AstraZeneca and Bristol-Myers Squibb, an\plain\cf1\f51\fs20\ql SGLT2 inhibitor; Jardiance\plain\cf1\f51\fs10\ql \u174?\plain\cf1\f51\fs20\ql (empagliflozin) from Boehringer Ingelheim, an SGLT2 inhibitor; Victoza\plain\cf1\f51\fs10\ql \u174?\plain\cf1\f51\fs20\ql (liraglutide) from Novo Nordisk A/S, a GLP-1 receptor agonist; Invokana\plain\cf1\f51\fs10\ql \u174?\plain\cf1\f51\fs20\ql (canaglifozin) from Johnson\~&\plain\cf1\f51\fs20\ql Johnson\u8217?s Janssen Pharmaceuticals, an SGLT2 inhibitor and Glyxambi\plain\cf1\f51\fs10\ql \u174?\plain\cf1\f51\fs20\ql (empagliflozin/linagliptin) from\plain\cf1\f51\fs20\ql Boehringer Ingelheim and Eli Lilly, an SGLT2 inhibitor and DPP-4 inhibitor combination product. Also,\plain\cf1\f51\fs20\ql EnteroMedics\u174? Inc. markets the Maestro Rechargeable System for certain obese adults, the first weight loss\plain\cf1\f51\fs20\ql treatment device that targets the nerve pathway between the brain and the stomach that controls feelings of hunger\plain\sa132\cf1\f51\fs20\ql and fullness.\par\pard\plain\fi792\cf1\f51\fs20\ql There are also several other investigational drug candidates in Phase\~2 clinical trials for the treatment of\plain\cf1\f51\fs20\ql obesity. There are also a number of generic pharmaceutical drugs that are prescribed for obesity, predominantly\plain\cf1\f51\fs20\ql phentermine. Phentermine is sold at much lower prices than we charge for Qsymia. The availability of branded\plain\cf1\f51\fs20\ql prescription drugs, generic drugs and over-the-counter drugs could limit the demand for, and the price we are\plain\sa132\cf1\f51\fs20\ql able to charge for, Qsymia.\par\pard\plain\fi792\cf1\f51\fs20\ql We also may face competition from the off-label use of the generic components in our drugs. In\plain\cf1\f51\fs20\ql particular, it is possible that patients will seek to acquire phentermine and topiramate, the generic components of\plain\cf1\f51\fs20\ql Qsymia. Neither of these generic components has a REMS program and both are available at retail pharmacies.\plain\cf1\f51\fs20\ql Although the dose strength of these generic components has not been approved by FDA for use in the treatment\plain\cf1\f51\fs20\ql of obesity, the off-label use of the generic components in the U.S. or the importation of the generic components\plain\cf1\f51\fs20\ql from foreign markets could adversely affect the commercial potential for our drugs and adversely affect our\plain\sa132\cf1\f51\fs20\ql overall business, financial condition and results of operations.\par\pard\plain\fi792\cf1\f51\fs20\ql There are also surgical approaches to treat severe obesity that are becoming increasingly accepted. Two\plain\cf1\f51\fs20\ql of the most well established surgical procedures are gastric bypass surgery and adjustable gastric banding, or lap\plain\cf1\f51\fs20\ql bands. In February\~2011, FDA approved the use of a lap band in patients with a BMI of 30 (reduced from\plain\cf1\f51\fs20\ql 35)\~with comorbidities. The lowering of the BMI requirement will make more obese patients eligible for these\plain\cf1\f51\fs20\ql types of bariatric procedures. In addition, other potential approaches that utilize various implantable devices or\plain\cf1\f51\fs20\ql surgical tools are in development. Some of these approaches are in late-stage development and may be approved\plain\sa132\cf1\f51\fs20\ql for marketing.\par\pard\plain\fi792\cf1\f51\fs20\ql Qsymia may also face challenges and competition from newly developed generic products. Under the\plain\cf1\f51\fs20\ql U.S. Drug Price Competition and Patent Term Restoration Act of 1984, known as the Hatch-Waxman Act, newly\plain\cf1\f51\fs20\ql approved drugs and indications may benefit from a statutory period of non-patent marketing exclusivity. The\plain\cf1\f51\fs20\ql Hatch-Waxman Act stimulates competition by providing incentives to generic pharmaceutical manufacturers to\plain\cf1\f51\fs20\ql introduce non-infringing forms of patented pharmaceutical products and to challenge patents on branded\plain\cf1\f51\fs20\ql pharmaceutical products. We received two notifications under paragraph IV of the Hatch-Waxman Act\plain\cf1\f51\fs20\ql challenging certain of our Qsymia patents, and we filed suit against both challengers. In June 2017, we entered\plain\cf1\f51\fs20\ql into a settlement agreement with Actavis Laboratories FL, Inc., Actavis, Inc., and Actavis PLC, collectively\plain\cf1\f51\fs20\ql referred to as \u8220?Actavis,\u8221? and in August 2017, we entered into a settlement agreement with Dr.\plain\cf1\f51\fs20\ql Reddy\u8217?s Laboratories, S.A. and Dr. Reddy\u8217?s Laboratories, Inc., collectively referred to as\plain\cf1\f51\fs20\ql \u8220?DRL.\u8221? The settlement agreement with Actavis will permit Actavis to begin selling a generic version\plain\cf1\f51\fs20\ql of Qsymia on December 1, 2024, or earlier under certain circumstances. The settlement agreement with DRL will\plain\cf1\f51\fs20\ql permit DRL to begin selling a generic version of Qsymia on June 1, 2025, or earlier under certain circumstances.\plain\cf1\f51\fs20\ql It is possible that one or more additional companies may file an Abbreviated New Drug Application\plain\cf1\f51\fs20\ql (\u8220?ANDA\u8221?) and could receive FDA approval to market a generic version of Qsymia before the entry\plain\cf1\f51\fs20\ql dates specified in our settlement agreements with Actavis and DRL. If a generic version of Qsymia is launched,\plain\cf1\f51\fs20\ql this will harm our business. Generic manufacturers pursuing ANDA approval are not required to conduct costly\plain\cf1\f51\fs20\ql and time-consuming clinical trials to establish the safety and efficacy of their products; rather, they are permitted\plain\cf1\f51\fs20\ql to rely on FDA\u8217?s finding that the innovator\u8217?s product is safe and effective. Additionally, generic\plain\cf1\f51\fs20\ql drug companies generally do not expend significant sums on sales and marketing activities, instead relying on\plain\cf1\f51\fs20\ql physicians or payors to substitute the generic form of a drug for the branded form. Thus, generic manufacturers\plain\sa132\cf1\f51\fs20\ql can sell their\par\pard\plain\cf1\f51\fs20\qc 45\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql products at prices much lower than those charged by the innovative pharmaceutical or biotechnology companies\plain\cf1\f51\fs20\ql who have incurred substantial expenses associated with the research and development of the drug product and\plain\sa132\cf1\f51\fs20\ql who must spend significant sums marketing a new drug.\par\pard\plain\fi792\cf1\f51\fs20\ql The FDCA provides that an ANDA holder and an innovator drug with a REMS with Elements to Assure\plain\cf1\f51\fs20\ql Safe use, like Qsymia, must use a single shared REMS system to assure safe use unless FDA waives this\plain\cf1\f51\fs20\ql requirement and permits the ANDA holder to implement a separate but comparable REMS. We cannot predict the\plain\cf1\f51\fs20\ql outcome or impact on our business of any future action that we may take with regard to sharing our REMS\plain\cf1\f51\fs20\ql program or if FDA grants a waiver allowing the generic competitor to market a generic drug with a separate but\plain\sa132\cf1\f51\fs20\ql comparable REMS.\par\pard\plain\fi792\cf1\f51\fs20\ql PANCREAZE for the treatment of pancreatic insufficiency competes with Creon\u174?, marketed by\plain\cf1\f51\fs20\ql AbbVie, Inc., Zenpep\u174?, marketed by Allergan Inc., Pertzye\u174?, marketed by Digestive Care, Inc., and\plain\cf1\f51\fs20\ql Ultresa\plain\cf1\f51\fs10\ql TM\plain\sa132\cf1\f51\fs20\ql , marketed by Aptalis Phama US, Inc.\par\pard\plain\fi792\cf1\f51\fs20\ql STENDRA for the treatment of ED competes with PDE5 inhibitors in the form of oral medications\plain\cf1\f51\fs20\ql including Viagra\u174? (sildenafil citrate), marketed by Pfizer, Inc.; Cialis\u174? (tadalafil), marketed by Eli Lilly\plain\cf1\f51\fs20\ql and Company; Levitra\u174? (vardenafil), co-marketed by GlaxoSmithKline plc and Schering-Plough Corporation\plain\cf1\f51\fs20\ql in the U.S.; and STAXYN\u174? (vardenafil in an oral disintegrating tablet (\u8220?ODT\u8221?)), co-promoted\plain\cf1\f51\fs20\ql by GlaxoSmithKline plc and Merck & Co., Inc. Additionally, generic formulations of sildenafil citrate and\plain\cf1\f51\fs20\ql tadalafil are currently available on the market and, on January 3, 2017, we granted Hetero a license to\plain\cf1\f51\fs20\ql manufacture and commercialize the generic version of STENDRA described in its ANDA filing in the United\plain\cf1\f51\fs20\ql States as of the date that is the later of (a) October 29, 2024, which is 180 days prior to the expiration of the last\plain\cf1\f51\fs20\ql to expire of the patents-in-suit, or (b) the date that Hetero obtains final approval from FDA of the Hetero\plain\sa132\cf1\f51\fs20\ql ANDA.\par\pard\plain\fi792\cf1\f51\fs20\ql New developments, including the development of other drug technologies and methods of preventing the\plain\cf1\f51\fs20\ql incidence of disease, occur in the pharmaceutical and medical technology industries at a rapid pace. These\plain\cf1\f51\fs20\ql developments may render our drugs and future investigational drug candidates obsolete or noncompetitive.\plain\sa132\cf1\f51\fs20\ql Compared to us, many of our potential competitors have substantially greater:
\par\pard\plain
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382\row}}}\pard\plain\fi792\cf1\f51\fs20\ql As a result of these factors, our competitors may obtain regulatory approval of their products more\plain\cf1\f51\fs20\ql rapidly than we or may obtain patent protection or other intellectual property rights that limit our ability to\plain\cf1\f51\fs20\ql develop or commercialize our future investigational drug candidates. Our competitors may also develop drugs or\plain\cf1\f51\fs20\ql surgical approaches that are more effective, more useful and less costly than ours and may also be more\plain\cf1\f51\fs20\ql successful in manufacturing and marketing their products. In addition, our competitors may be more effective in\plain\cf1\f51\fs20\ql commercializing their products. We currently outsource our manufacturing and therefore rely on third parties for\plain\cf1\f51\fs20\ql that competitive expertise. There can be no assurance that we will be able to develop or contract for these\plain\sa132\cf1\f51\fs20\ql capabilities on acceptable economic terms, or at all.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We may participate in new partnerships and other strategic transactions that could impact our liquidity,\plain\sa132\cf1\f51\fs20\b\i\ql increase our expenses and present significant distractions to our management.\par\pard\plain\fi792\cf1\f51\fs20\ql From time to time, we consider strategic transactions, such as out-licensing or in-licensing of\plain\cf1\f51\fs20\ql compounds or technologies, acquisitions of companies and asset purchases. On September 30, 2016, we entered\plain\cf1\f51\fs20\ql into a license and commercialization agreement and a commercial supply agreement with Metuchen. Under the\plain\cf1\f51\fs20\ql terms of the agreements, Metuchen received an exclusive license to develop, commercialize and promote\plain\cf1\f51\fs20\ql STENDRA in the United States, Canada, South America and India (the \u8220?Territory\u8221?) effective\plain\cf1\f51\fs20\ql October 1, 2016. Additionally, on January 6, 2017, we entered into a Patent Assignment Agreement with Selten,\plain\cf1\f51\fs20\ql whereby we received exclusive, worldwide rights for the development and commercialization of tacrolimus for the\plain\cf1\f51\fs20\ql treatment of PAH and related vascular diseases. Also, on June 8, 2018, we closed on the acquisition of\plain\sa132\cf1\f51\fs20\ql PANCREAZE from Janssen, pursuant to\par\pard\plain\cf1\f51\fs20\qc 46\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql which we acquired the rights to PANCREAZE and PANCREASE MT in the U.S. and Canada. Further potential\plain\cf1\f51\fs20\ql transactions we may consider include a variety of different business arrangements, including strategic partnerships,\plain\cf1\f51\fs20\ql joint ventures, spin-offs, restructurings, divestitures, business combinations and investments. In addition, another\plain\cf1\f51\fs20\ql entity may pursue us as an acquisition target. Any such transactions may require us to incur non-recurring or\plain\cf1\f51\fs20\ql other charges, may increase our near- and long-term expenditures and may pose significant integration\plain\cf1\f51\fs20\ql challenges, require additional expertise or disrupt our management or business, any of which could harm our\plain\sa132\cf1\f51\fs20\ql operations and financial results.\par\pard\plain\fi792\cf1\f51\fs20\ql As part of an effort to enter into significant transactions, we conduct business, legal and financial due\plain\cf1\f51\fs20\ql diligence with the goal of identifying and evaluating material risks involved in the transaction. Despite our efforts,\plain\cf1\f51\fs20\ql we ultimately may be unsuccessful in ascertaining or evaluating all such risks and, as a result, might not realize\plain\cf1\f51\fs20\ql the expected benefits of the transaction. If we fail to realize the expected benefits from any transaction we may\plain\cf1\f51\fs20\ql consummate, whether as a result of unidentified risks, integration difficulties, regulatory setbacks or other events,\plain\sa132\cf1\f51\fs20\ql our business, results of operations and financial condition could be adversely affected.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Our failure to successfully identify, acquire, develop and market additional investigational drug candidates or\plain\sa132\cf1\f51\fs20\b\i\ql approved drugs would impair our ability to grow.\par\pard\plain\fi792\cf1\f51\fs20\ql As part of our growth strategy, we may acquire, in-license, develop and/or market additional products\plain\cf1\f51\fs20\ql and investigational drug candidates. Most recently, on June 8, 2018, we closed on the acquisition of\plain\cf1\f51\fs20\ql PANCREAZE from Janssen, pursuant to which we acquired the rights to PANCREAZE and PANCREASE MT in\plain\cf1\f51\fs20\ql the U.S. and Canada. Also, on January 6, 2017, we entered into a Patent Assignment Agreement with Selten,\plain\cf1\f51\fs20\ql whereby we received exclusive, worldwide rights for the development and commercialization of tacrolimus for the\plain\cf1\f51\fs20\ql treatment of PAH and related vascular diseases. Because our internal research capabilities are limited, we may be\plain\cf1\f51\fs20\ql dependent upon pharmaceutical and biotechnology companies, academic scientists and other researchers to sell or\plain\cf1\f51\fs20\ql license products or technology to us. The success of this strategy depends partly upon our ability to identify,\plain\sa132\cf1\f51\fs20\ql select and acquire promising pharmaceutical investigational drug candidates and products.\par\pard\plain\fi792\cf1\f51\fs20\ql The process of proposing, negotiating and implementing a license or acquisition of an investigational\plain\cf1\f51\fs20\ql drug candidate or approved product is lengthy and complex. Other companies, including some with substantially\plain\cf1\f51\fs20\ql greater financial, marketing and sales resources, may compete with us for the license or acquisition of\plain\cf1\f51\fs20\ql investigational drug candidates and approved products. We have limited resources to identify and execute the\plain\cf1\f51\fs20\ql acquisition or in-licensing of third-party products, businesses and technologies and integrate them into our current\plain\cf1\f51\fs20\ql infrastructure. Moreover, we may devote resources to potential acquisitions or in-licensing opportunities that are\plain\cf1\f51\fs20\ql never completed, or we may fail to realize the anticipated benefits of such efforts. We may not be able to acquire\plain\sa132\cf1\f51\fs20\ql the rights to additional investigational drug candidates on terms that we find acceptable, or at all.\par\pard\plain\sa132\fi792\cf1\f51\fs20\ql In addition, future acquisitions may entail numerous operational and financial risks, including:
\par\pard\plain
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql disruption of our business and diversion of our management\u8217?s time and attention to develop\plain\intbl\sa132\cf1\f51\fs20\ql acquired products or technologies;\cell{
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405\row}}}
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql impairment of relationships with key suppliers or customers of any acquired businesses due to\plain\intbl\sa132\cf1\f51\fs20\ql changes in management and ownership; and\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382\row}}}\pard\plain\fi792\cf1\f51\fs20\ql Further, any investigational drug candidate that we acquire may require additional development efforts\plain\cf1\f51\fs20\ql prior to commercial sale, including extensive clinical testing and obtaining approval by FDA and applicable\plain\sa132\cf1\f51\fs20\ql foreign\par\pard\plain\cf1\f51\fs20\qc 47\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql regulatory authorities. All investigational drug candidates are prone to certain failures that are relatively common\plain\cf1\f51\fs20\ql in the field of drug development, including the possibility that an investigational drug candidate will not be shown\plain\cf1\f51\fs20\ql to be sufficiently safe and effective for approval by regulatory authorities. In addition, we cannot be certain that\plain\cf1\f51\fs20\ql any drugs that we develop or approved products that we may acquire will be commercialized profitably or achieve\plain\sa132\cf1\f51\fs20\ql market acceptance.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql If we fail to retain our key personnel and hire, train and retain qualified employees, we may not be able to\plain\cf1\f51\fs20\b\i\ql compete effectively, which could result in reduced revenues or delays in the development of our investigational\plain\sa132\cf1\f51\fs20\b\i\ql drug candidates or commercialization of our approved drugs.\par\pard\plain\fi792\cf1\f51\fs20\ql Our success is highly dependent upon the skills of a limited number of key management personnel. To\plain\cf1\f51\fs20\ql reach our business objectives, we will need to retain and hire qualified personnel in the areas of manufacturing,\plain\cf1\f51\fs20\ql commercial operations, research and development, regulatory and legal affairs, business development, clinical trial\plain\cf1\f51\fs20\ql design, execution and analysis, and pre-clinical testing. There can be no assurance that we will be able to retain\plain\cf1\f51\fs20\ql or hire such personnel, as we must compete with other companies, academic institutions, government entities and\plain\cf1\f51\fs20\ql other agencies. The loss of any of our key personnel or the failure to attract or retain necessary new employees\plain\cf1\f51\fs20\ql could have an adverse effect on our research programs, investigational drug candidate development, approved drug\plain\sa132\cf1\f51\fs20\ql commercialization efforts and business operations.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We rely on third parties and collaborative partners to manufacture sufficient quantities of compounds within\plain\cf1\f51\fs20\b\i\ql product specifications as required by regulatory agencies for use in our pre-clinical and clinical trials and\plain\sa132\cf1\f51\fs20\b\i\ql commercial operations and an interruption to this service may harm our business.\par\pard\plain\fi792\cf1\f51\fs20\ql We do not have the ability to manufacture the materials we use in our pre-clinical and clinical trials and\plain\cf1\f51\fs20\ql commercial operations. Rather, we rely on various third parties to manufacture these materials and there may be\plain\cf1\f51\fs20\ql long lead times to obtain materials. There can be no assurance that we will be able to identify, contract with,\plain\cf1\f51\fs20\ql qualify and obtain prior regulatory approval for additional sources of clinical materials. If interruptions in this\plain\cf1\f51\fs20\ql supply occur for any reason, including a decision by the third parties to discontinue manufacturing, technical\plain\cf1\f51\fs20\ql difficulties, labor disputes, natural or other disasters, or a failure of the third parties to follow regulations, we may\plain\cf1\f51\fs20\ql not be able to obtain regulatory approvals for our investigational drug candidates and may not be able to\plain\sa132\cf1\f51\fs20\ql successfully commercialize these investigational drug candidates or our approved drugs.\par\pard\plain\fi792\cf1\f51\fs20\ql Our third-party manufacturers and collaborative partners may encounter delays and problems in\plain\cf1\f51\fs20\ql manufacturing our approved drugs or investigational drug candidates for a variety of reasons, including accidents\plain\cf1\f51\fs20\ql during operation, failure of equipment, delays in receiving materials, natural or other disasters, political or\plain\cf1\f51\fs20\ql governmental changes, or other factors inherent in operating complex manufacturing facilities. Supply-chain\plain\cf1\f51\fs20\ql management is difficult. Commercially available starting materials, reagents, excipients, and other materials may\plain\cf1\f51\fs20\ql become scarce, more expensive to procure, or not meet quality standards, and we may not be able to obtain\plain\cf1\f51\fs20\ql favorable terms in agreements with subcontractors. Our third-party manufacturers may not be able to operate\plain\cf1\f51\fs20\ql manufacturing facilities in a cost-effective manner or in a time frame that is consistent with our expected future\plain\cf1\f51\fs20\ql manufacturing needs. If our third-party manufacturers, cease or interrupt production or if our third-party\plain\cf1\f51\fs20\ql manufacturers and other service providers fail to supply materials, products or services to us for any reason, such\plain\cf1\f51\fs20\ql interruption could delay progress on our programs, or interrupt the commercial supply, with the potential for\plain\cf1\f51\fs20\ql additional costs and lost revenues. If this were to occur, we may also need to seek alternative means to fulfill our\plain\sa132\cf1\f51\fs20\ql manufacturing needs.\par\pard\plain\fi792\cf1\f51\fs20\ql For example, Catalent Pharma Solutions,\~LLC (\u8220?Catalent\u8221?) is our sole source of clinical and\plain\cf1\f51\fs20\ql commercial supplies for Qsymia. While Catalent has significant experience in commercial scale manufacturing,\plain\cf1\f51\fs20\ql there is no assurance that Catalent will be successful in continuing to supply Qsymia at current levels or\plain\cf1\f51\fs20\ql increasing the scale of the Qsymia manufacturing process, should the market demand for Qsymia expand beyond\plain\cf1\f51\fs20\ql the level supportable by the current validated manufacturing process. Such a failure by Catalent to meet current\plain\cf1\f51\fs20\ql demand or to further scale up the commercial manufacturing process for Qsymia could have a material adverse\plain\cf1\f51\fs20\ql impact on our ability to realize commercial success with Qsymia in the U.S. market, and have a material adverse\plain\sa132\cf1\f51\fs20\ql impact on our plan, market price of our common stock and financial condition.\par\pard\plain\cf1\f51\fs20\qc 48\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\fi792\cf1\f51\fs20\ql For PANCREAZE, Nordmark is our sole source of clinical and commercial supplies. Nordmark has\plain\cf1\f51\fs20\ql significant experience in manufacturing; however, there is no assurance that they will continue to be successful in\plain\cf1\f51\fs20\ql supplying PANCREAZE in the future or if we will be able to continue our relationship with Nordmark on\plain\sa132\cf1\f51\fs20\ql favorable terms to us for any future formulations and quantities.\par\pard\plain\fi792\cf1\f51\fs20\ql For avanafil, Sanofi Chimie manufactures and supplies the API for avanafil on an exclusive basis in the\plain\cf1\f51\fs20\ql United States and other territories and on a semi-exclusive basis in Europe, including the EU, Latin America and\plain\cf1\f51\fs20\ql other territories. Sanofi Winthrop Industrie manufactures and supplies the avanafil tablets for STENDRA and\plain\cf1\f51\fs20\ql SPEDRA on an exclusive basis in the United States and other territories and on a semi-exclusive basis in Europe,\plain\cf1\f51\fs20\ql including the EU, Latin America and other territories. Sanofi is responsible for all aspects of manufacture,\plain\cf1\f51\fs20\ql including obtaining the starting materials for the production of API. If Sanofi is unable to manufacture the API or\plain\cf1\f51\fs20\ql tablets in sufficient quantities to meet projected demand, future sales could be adversely affected, which in turn\plain\cf1\f51\fs20\ql could have a detrimental impact on our financial results, our license, commercialization, and supply agreements\plain\cf1\f51\fs20\ql with our collaboration partners, and our ability to enter into a collaboration agreement for the commercialization\plain\sa132\cf1\f51\fs20\ql in other territories.\par\pard\plain\fi792\cf1\f51\fs20\ql Any failure of current or future manufacturing sites, including those of Sanofi Chimie and Sanofi\plain\cf1\f51\fs20\ql Winthrop Industrie, to receive or maintain approval from FDA or foreign authorities, obtain and maintain ongoing\plain\cf1\f51\fs20\ql FDA or foreign regulatory compliance, or manufacture avanafil API or tablets in expected quantities could have a\plain\cf1\f51\fs20\ql detrimental impact on our ability to commercialize STENDRA under our agreements with Menarini and Metuchen\plain\cf1\f51\fs20\ql and our ability to enter into a collaboration agreement for the commercialization of STENDRA in our other\plain\sa132\cf1\f51\fs20\ql territories not covered by our agreements with Menarini and Metuchen.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We rely on third parties to maintain appropriate levels of confidentiality of the data compiled during clinical,\plain\sa132\cf1\f51\fs20\b\i\ql pre-clinical and retrospective observational studies and trials.\par\pard\plain\fi792\cf1\f51\fs20\ql We seek to maintain the confidential nature of our confidential information through contractual provisions\plain\cf1\f51\fs20\ql in our agreements with third parties, including our agreements with clinical research organizations\plain\cf1\f51\fs20\ql (\u8220?CROs\u8221?) that manage our clinical studies for our investigational drug candidates. These CROs may\plain\cf1\f51\fs20\ql fail to comply with their obligations of confidentiality or may be required as a matter of law to disclose our\plain\cf1\f51\fs20\ql confidential information. As the success of our clinical studies depends in large part on our confidential\plain\cf1\f51\fs20\ql information remaining confidential prior to, during and after a clinical study, any disclosure or breach affecting\plain\cf1\f51\fs20\ql that information could have a material adverse effect on the outcome of a clinical study, our business, financial\plain\cf1\f51\fs20\ql condition and results of operations. Additionally, we intend to launch the VIVUS Healthcare Platform in 2019,\plain\sa132\cf1\f51\fs20\ql which will provide current and potential customers with an integrated online approach to weight management.\par\pard\plain\fi792\cf1\f51\fs20\ql The collection and use of personal health data and other personal data in the EU is governed by the\plain\cf1\f51\fs20\ql General Data Protection Regulation (\u8220?GDPR\u8221?) which became applicable on May 25, 2018, replacing\plain\cf1\f51\fs20\ql the EU Data Protection Directive, imposes strict obligations and restrictions on the ability to collect, analyze and\plain\cf1\f51\fs20\ql transfer personal data, including health data from clinical trials and adverse event reporting and substantial fines\plain\cf1\f51\fs20\ql and other administrative penalties. Compliance with the GDPR may be onerous and increase our cost of doing\plain\cf1\f51\fs20\ql business. For more information concerning the data protection requirements in the EU and the EU Member States\plain\cf1\f51\fs20\ql and the rules governing the transfer of personal data to the U.S., please refer to the section title\plain\sa132\cf1\f51\fs20\ql \u8220?Government Regulation - Fraud and Abuse and Privacy and Data Security Laws and Regulations.\u8221?\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql If we fail to comply with applicable healthcare and privacy and data security laws and regulations, we could\plain\cf1\f51\fs20\b\i\ql face substantial penalties, liability and adverse publicity and our business, operations and financial condition\plain\sa132\cf1\f51\fs20\b\i\ql could be adversely affected.\par\pard\plain\fi792\cf1\f51\fs20\ql Our arrangements with third-party payors, patients and customers expose us to broadly applicable federal\plain\cf1\f51\fs20\ql and state healthcare laws and regulations pertaining to fraud and abuse. In addition, our operations expose us to\plain\cf1\f51\fs20\ql privacy and data security laws and regulations. The restrictions under applicable federal and state healthcare laws\plain\cf1\f51\fs20\ql and regulations, and privacy and data security laws and regulations, that may affect our ability to operate include,\plain\sa132\cf1\f51\fs20\ql but are not limited to:\par\pard\plain\cf1\f51\fs20\qc 49\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql the federal healthcare Anti-Kickback Statute, which prohibits, among other things, knowingly or\plain\intbl\cf1\f51\fs20\ql willingly offering, paying, soliciting or receiving remuneration, directly or indirectly, in cash or in\plain\intbl\cf1\f51\fs20\ql kind, to induce or reward the purchasing, leasing, ordering or arranging for or recommending the\plain\intbl\cf1\f51\fs20\ql purchase, lease or order of any healthcare items or service for which payment may be made, in\plain\intbl\cf1\f51\fs20\ql whole or in part, by federal healthcare programs such as Medicare and Medicaid. This statute has\plain\intbl\cf1\f51\fs20\ql been interpreted to apply to arrangements between pharmaceutical companies on one hand and\plain\intbl\cf1\f51\fs20\ql prescribers, purchasers and formulary managers on the other. Liability under the Anti-Kickback\plain\intbl\cf1\f51\fs20\ql Statute may be established without proving actual knowledge of the statute or specific intent to\plain\intbl\cf1\f51\fs20\ql violate it. In addition, the government may assert that a claim including items or services resulting\plain\intbl\cf1\f51\fs20\ql from a violation of the federal Anti-Kickback Statute constitutes a false or fraudulent claim for\plain\intbl\cf1\f51\fs20\ql purposes of the federal civil False Claims Act. Although there are a number of statutory exemptions\plain\intbl\cf1\f51\fs20\ql and regulatory safe harbors to the federal Anti-Kickback Statute protecting certain common business\plain\intbl\cf1\f51\fs20\ql arrangements and activities from prosecution or regulatory sanctions, the exemptions and safe harbors\plain\intbl\cf1\f51\fs20\ql are drawn narrowly, and practices that do not fit squarely within an exemption or safe harbor may be\plain\intbl\cf1\f51\fs20\ql subject to scrutiny. Moreover, the anti-kickback statute is subject to evolving interpretation and there\plain\intbl\cf1\f51\fs20\ql are no safe harbors for many common practices, including patient or product support programs,\plain\intbl\cf1\f51\fs20\ql educational and research grants, or charitable donations. We seek to comply with the exemptions and\plain\intbl\cf1\f51\fs20\ql safe harbors whenever possible, but our practices may not in all cases meet all of the criteria for safe\plain\intbl\sa132\cf1\f51\fs20\ql harbor protection from anti-kickback liability;\cell{
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql the federal civil False Claims Act, which imposes civil penalties against individuals\plain\intbl\cf1\f51\fs20\ql and entities for, among other things, knowingly presenting, or causing to be presented,\plain\intbl\cf1\f51\fs20\ql a false or fraudulent claim for payment of government funds or knowingly making,\plain\intbl\cf1\f51\fs20\ql using, or causing to be made or used, a false record or statement material to an\plain\intbl\cf1\f51\fs20\ql obligation to pay money to the government or knowingly concealing, or knowingly\plain\intbl\cf1\f51\fs20\ql and improperly avoiding, decreasing, or concealing an obligation to pay money to the\plain\intbl\cf1\f51\fs20\ql federal government. Actions under the False Claims Act may be brought by the U.S.\plain\intbl\cf1\f51\fs20\ql Attorney General or as a qui tam action by a private individual in the name of the\plain\intbl\cf1\f51\fs20\ql government. Many pharmaceutical and other healthcare companies have been\plain\intbl\cf1\f51\fs20\ql investigated and have reached substantial financial settlements with the federal\plain\intbl\cf1\f51\fs20\ql government under the civil False Claims Act for a variety of alleged improper\plain\intbl\cf1\f51\fs20\ql marketing activities, including providing free product to customers with the expectation\plain\intbl\cf1\f51\fs20\ql that the customers would bill federal programs for the product; providing consulting\plain\intbl\cf1\f51\fs20\ql fees, grants, free travel, and other benefits to physicians to induce them to prescribe\plain\intbl\cf1\f51\fs20\ql the company\u8217?s products; and inflating prices reported to private price\plain\intbl\cf1\f51\fs20\ql publication services, which are used to set drug payment rates under government\plain\intbl\cf1\f51\fs20\ql healthcare programs. In addition, in recent years the government has pursued civil\plain\intbl\cf1\f51\fs20\ql False Claims Act cases against a number of pharmaceutical companies for causing\plain\intbl\cf1\f51\fs20\ql false claims to be submitted as a result of the marketing of their products for\plain\intbl\cf1\f51\fs20\ql unapproved, and thus non-reimbursable, uses. More recently, federal enforcement\plain\intbl\cf1\f51\fs20\ql agencies are and have been investigating certain pharmaceutical companies\u8217?\plain\intbl\cf1\f51\fs20\ql product and patient assistance programs, including manufacturer reimbursement support\plain\intbl\cf1\f51\fs20\ql services, relationships with specialty pharmacies, and grants to independent charitable\plain\intbl\cf1\f51\fs20\ql foundations. False Claims Act liability is potentially significant in the healthcare\plain\intbl\cf1\f51\fs20\ql industry because the statute provides for treble damages and mandatory penalties per\plain\intbl\cf1\f51\fs20\ql false or fraudulent claim or statement. Because of the potential for large monetary\plain\intbl\cf1\f51\fs20\ql exposure, healthcare and pharmaceutical companies often resolve allegations without\plain\intbl\cf1\f51\fs20\ql admissions of liability for significant and material amounts. Pharmaceutical and other\plain\intbl\cf1\f51\fs20\ql healthcare companies also are subject to other federal false claim laws, including,\plain\intbl\cf1\f51\fs20\ql among others, federal criminal healthcare fraud and false statement statutes that extend\plain\intbl\sa132\cf1\f51\fs20\ql to non-government health benefit programs;\cell{
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql The federal Health Insurance Portability and Accountability Act of 1996, as amended by HIPAA\plain\intbl\cf1\f51\fs20\ql imposes criminal and civil liability for executing a scheme to defraud any healthcare benefit program\plain\intbl\cf1\f51\fs20\ql and also imposes obligations, with respect to safeguarding the privacy, security and transmission of\plain\intbl\sa132\cf1\f51\fs20\ql individually identifiable health information;\cell{
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql numerous U.S. federal and state laws and regulations, including state data breach notification laws,\plain\intbl\cf1\f51\fs20\ql state health information privacy laws and federal and state consumer protection laws, govern the\plain\intbl\cf1\f51\fs20\ql collection, use, disclosure and protection of personal information. Other countries also have, or are\plain\intbl\cf1\f51\fs20\ql developing, laws governing the collection, use, disclosure and protection of personal information. The\plain\intbl\sa132\cf1\f51\fs20\ql GDPR, for example, is an EU-wide regulation that imposes restrictions on the processing (e.g.,\cell{
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\pard\plain\intbl\li1188\cf1\f51\fs20\ql collection, use, disclosure) of personal data and that also imposes strict restrictions on the transfer of\plain\intbl\li1188\cf1\f51\fs20\ql personal data out of the EU to the U.S. In addition, most healthcare providers who prescribe our\plain\intbl\li1188\cf1\f51\fs20\ql products and from whom we obtain patient health information are subject to privacy and security\plain\intbl\li1188\cf1\f51\fs20\ql requirements under the Health Insurance Portability and Accountability Act of 1996 and by the\plain\intbl\li1188\cf1\f51\fs20\ql Health Information Technology for Economic and Clinical Health Act (\u8220?HITECH\u8221?)\plain\intbl\li1188\cf1\f51\fs20\ql which are collectively referred to as \u8220?HIPAA.\u8221? We are not a HIPAA-covered entity\plain\intbl\li1188\cf1\f51\fs20\ql and we do not operate as a business associate to any covered entities. Therefore, the HIPAA privacy\plain\intbl\li1188\cf1\f51\fs20\ql and security requirements do not apply to us (other than potentially with respect to providing certain\plain\intbl\li1188\cf1\f51\fs20\ql employee benefits). However, we could be subject to criminal penalties if we knowingly obtain\plain\intbl\li1188\cf1\f51\fs20\ql individually identifiable health information from a covered entity in a manner that is not authorized\plain\intbl\li1188\cf1\f51\fs20\ql or permitted by HIPAA or for aiding and abetting and/or conspiring to commit a violation of\plain\intbl\li1188\cf1\f51\fs20\ql HIPAA. We are unable to predict whether our actions could be subject to prosecution in the event of\plain\intbl\li1188\cf1\f51\fs20\ql an impermissible disclosure of health information to us. The legislative and regulatory landscape for\plain\intbl\li1188\cf1\f51\fs20\ql privacy and data security continues to evolve, and there has been an increasing amount of focus on\plain\intbl\li1188\cf1\f51\fs20\ql privacy and data security issues with the potential to affect our business. These privacy and data\plain\intbl\li1188\cf1\f51\fs20\ql security laws and regulations could increase our cost of doing business, and failure to comply with\plain\intbl\li1188\cf1\f51\fs20\ql these laws and regulations could result in government enforcement actions (which could include civil\plain\intbl\li1188\cf1\f51\fs20\ql or criminal penalties), private litigation and/or adverse publicity and could negatively affect our\plain\intbl\li1188\sa132\cf1\f51\fs20\ql operating results and business;\cell{
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql analogous state laws and regulations, such as state anti-kickback and false claims laws, may apply to\plain\intbl\cf1\f51\fs20\ql items or services reimbursed under Medicaid and other state programs or, in several states, apply\plain\intbl\cf1\f51\fs20\ql regardless of the payor. Some state laws also require pharmaceutical companies to report expenses\plain\intbl\cf1\f51\fs20\ql relating to the marketing and promotion of pharmaceutical products and to report gifts and payments\plain\intbl\cf1\f51\fs20\ql to certain healthcare providers in the states. Other states prohibit providing meals to prescribers or\plain\intbl\cf1\f51\fs20\ql other marketing-related activities and restrict the ability of manufacturers to offer co-pay support to\plain\intbl\cf1\f51\fs20\ql patients for certain prescription drugs. Some states require the posting of information relating to\plain\intbl\cf1\f51\fs20\ql clinical studies and their outcomes. Some states and cities require identification or licensing of sales\plain\intbl\cf1\f51\fs20\ql representatives. Some states restrict the ability of manufacturers to offer co-pay support to patients\plain\intbl\cf1\f51\fs20\ql for certain prescription drugs. Other states and cities require identification or licensing of state\plain\intbl\cf1\f51\fs20\ql representatives. In addition, some states require pharmaceutical companies to implement compliance\plain\intbl\cf1\f51\fs20\ql programs or marketing codes of conduct. Foreign governments often have similar regulations, which\plain\intbl\sa132\cf1\f51\fs20\ql we also will be subject to in those countries where we market and sell products;\cell{
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql the federal Physician Payment Sunshine Act, being implemented as the Open Payments Program,\plain\intbl\cf1\f51\fs20\ql requires certain pharmaceutical manufacturers of drugs, devices, biologics and medical supplies for\plain\intbl\cf1\f51\fs20\ql which payment is available under Medicare, Medicaid, or the Children\u8217?s Health Insurance\plain\intbl\cf1\f51\fs20\ql Program to report annually to the Centers for Medicare and Medicaid Services (\u8220?CMS\u8221?)\plain\intbl\cf1\f51\fs20\ql within the U.S. Department of Health and Human Services information related payments and other\plain\intbl\cf1\f51\fs20\ql transfers of value, directly or indirectly, to physicians (defined to include doctors, dentists,\plain\intbl\cf1\f51\fs20\ql optometrists, podiatrists, and chiropractors) and teaching hospitals, as well as ownership and\plain\intbl\cf1\f51\fs20\ql investment interests held by physicians and their immediate family members. Beginning in 2022,\plain\intbl\cf1\f51\fs20\ql applicable manufacturers also will be required to report information regarding payments and transfers\plain\intbl\cf1\f51\fs20\ql of value provided to physician assistants, nurse practitioners, clinical nurse specialists, certified nurse\plain\intbl\sa132\cf1\f51\fs20\ql anesthetists, and certified nurse-midwives; and\cell{
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql the federal Foreign Corrupt Practices Act of 1977 and other similar anti-bribery laws in other\plain\intbl\cf1\f51\fs20\ql jurisdictions prohibit companies and their intermediaries from providing money or anything of value\plain\intbl\cf1\f51\fs20\ql to officials of foreign governments, candidates for foreign political office, or public international\plain\intbl\cf1\f51\fs20\ql organizations with the intent to obtain or retain business or seek a business advantage. Recently,\plain\intbl\cf1\f51\fs20\ql there has been a substantial increase in anti-bribery law enforcement activity by U.S. and foreign\plain\intbl\cf1\f51\fs20\ql regulators, with more frequent and aggressive investigations and enforcement proceedings by both the\plain\intbl\cf1\f51\fs20\ql Department of Justice and the SEC. A determination that our operations or activities are not, or were\plain\intbl\cf1\f51\fs20\ql not, in compliance with United States or foreign laws or regulations could result in the imposition of\plain\intbl\cf1\f51\fs20\ql substantial fines, interruptions of business, loss of supplier, vendor or other third-party relationships,\plain\intbl\cf1\f51\fs20\ql termination of necessary licenses and permits, and other legal or equitable sanctions. Other internal\plain\intbl\cf1\f51\fs20\ql or government investigations or legal or regulatory proceedings, including lawsuits brought by private\plain\intbl\sa132\cf1\f51\fs20\ql litigants, may also follow as a consequence.\cell{
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\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\fi792\cf1\f51\fs20\ql State and federal regulatory and enforcement agencies continue to actively investigate violations of\plain\cf1\f51\fs20\ql healthcare laws and regulations, and the U.S. Congress continues to strengthen the arsenal of enforcement tools.\plain\cf1\f51\fs20\ql Most recently, the Bipartisan Budget Act of 2018 increased the criminal and civil penalties that can be imposed\plain\cf1\f51\fs20\ql for violating certain federal healthcare laws, including the federal healthcare Anti-Kickback Statute. If our\plain\cf1\f51\fs20\ql operations are found to be in violation of any of the laws and regulations described above or any other\plain\cf1\f51\fs20\ql governmental regulations that apply to us, we may be subject to significant civil, criminal and administrative\plain\cf1\f51\fs20\ql penalties, imprisonment, damages, fines, exclusion from government-funded healthcare programs, like Medicare\plain\cf1\f51\fs20\ql and Medicaid (i.e., loss of coverage for products), and the curtailment or restructuring of our operations including\plain\cf1\f51\fs20\ql by entering into a Corporate Integrity Agreement with the U.S. Department of Health and Human Services Office\plain\cf1\f51\fs20\ql of Inspector General. Any penalties, damages, fines, curtailment or restructuring of our operations, or associated\plain\cf1\f51\fs20\ql adverse publicity, could adversely affect our ability to operate our business and our financial results. Although\plain\cf1\f51\fs20\ql compliance programs can mitigate the risk of investigation and prosecution for violations of these laws and\plain\cf1\f51\fs20\ql regulations, the risks cannot be entirely eliminated. Any action against us for violation of these laws or\plain\cf1\f51\fs20\ql regulations, even if we successfully defend against it, could cause us to incur significant legal expenses and divert\plain\cf1\f51\fs20\ql our management\u8217?s attention from the operation of our business. Moreover, achieving and sustaining\plain\cf1\f51\fs20\ql compliance with applicable federal and state privacy data, security and fraud laws and regulations may prove\plain\sa132\cf1\f51\fs20\ql costly.\par\pard\plain\fi792\cf1\f51\fs20\ql In the EU, the advertising and promotion of our products will also be subject to EU Member\plain\cf1\f51\fs20\ql States\u8217? laws concerning promotion of medicinal products, interactions with physicians, misleading and\plain\cf1\f51\fs20\ql comparative advertising and unfair commercial practices, as well as other EU Member State legislation governing\plain\cf1\f51\fs20\ql statutory health insurance, bribery and anti-corruption. Failure to comply with these rules\~can result in\plain\cf1\f51\fs20\ql enforcement action by the EU Member State authorities, which may include any of the following: fines,\plain\cf1\f51\fs20\ql imprisonment, orders forfeiting products or prohibiting or suspending their supply to the market, or requiring the\plain\sa132\cf1\f51\fs20\ql manufacturer to issue public warnings, or to conduct a product recall.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Significant disruptions of information technology systems or security breaches could adversely affect our\plain\sa132\cf1\f51\fs20\b\i\ql business.\par\pard\plain\fi792\cf1\f51\fs20\ql We are increasingly dependent upon information technology systems, infrastructure and data to operate\plain\cf1\f51\fs20\ql our business. In the ordinary course of business, we collect, store and transmit large amounts of confidential\plain\cf1\f51\fs20\ql information (including but not limited to trade secrets or other intellectual property, proprietary business\plain\cf1\f51\fs20\ql information and personal information). It is critical that we do so in a secure manner to maintain the\plain\cf1\f51\fs20\ql confidentiality and integrity of such confidential information. We also have outsourced elements of our operations\plain\cf1\f51\fs20\ql to third parties, and as a result we manage a number of third party vendors who may or could have access to our\plain\cf1\f51\fs20\ql confidential information. The size and complexity of our information technology systems, and those of third party\plain\cf1\f51\fs20\ql vendors with whom we contract, and the large amounts of confidential information stored on those systems, make\plain\cf1\f51\fs20\ql such systems potentially vulnerable to service interruptions or to security breaches from inadvertent or intentional\plain\cf1\f51\fs20\ql actions by our employees, third party vendors, and/or business partners, or from cyber-attacks by malicious third\plain\cf1\f51\fs20\ql parties. Cyber-attacks are increasing in their frequency, sophistication, and intensity, and have become\plain\cf1\f51\fs20\ql increasingly difficult to detect. Cyber-attacks could include the deployment of harmful malware,\plain\cf1\f51\fs20\ql denial-of-service attacks, social engineering and other means to affect service reliability and threaten the\plain\sa132\cf1\f51\fs20\ql confidentiality, integrity and availability of information.\par\pard\plain\fi792\cf1\f51\fs20\ql Significant disruptions of our information technology systems or security breaches could adversely affect\plain\cf1\f51\fs20\ql our business operations and/or result in the loss, misappropriation and/or unauthorized access, use or disclosure of,\plain\cf1\f51\fs20\ql or the prevention of access to, confidential information (including but not limited to trade secrets or other\plain\cf1\f51\fs20\ql intellectual property, proprietary business information and personal information), and could result in financial,\plain\cf1\f51\fs20\ql legal, business and reputational harm to us. For example, any such event that leads to unauthorized access, use or\plain\cf1\f51\fs20\ql disclosure of personal information, including personal information regarding patients or employees, could harm\plain\cf1\f51\fs20\ql our reputation, require us to comply with federal and/or state breach notification laws and foreign law equivalents,\plain\cf1\f51\fs20\ql and otherwise subject us to liability under laws and regulations that protect the privacy and security of personal\plain\cf1\f51\fs20\ql information. Security breaches and other inappropriate access can be difficult to detect, and any delay in\plain\cf1\f51\fs20\ql identifying them may lead to increased harm of the type described above. While we have implemented security\plain\cf1\f51\fs20\ql measures to protect our information technology systems and infrastructure, there can be no assurance that such\plain\sa132\cf1\f51\fs20\ql measures will prevent service interruptions or security breaches that could adversely affect our business.\par\pard\plain\cf1\f51\fs20\qc 52\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\sa132\cf1\f51\fs20\b\i\ql Marketing activities for our approved drugs are subject to continued governmental regulation.\par\pard\plain\fi792\cf1\f51\fs20\ql FDA, and third-country authorities, including the competent authorities of the EU Member States, have\plain\cf1\f51\fs20\ql the authority to impose significant restrictions, including REMS requirements, on approved products through\plain\cf1\f51\fs20\ql regulations on advertising, promotional and distribution activities. After approval, if products are marketed in\plain\cf1\f51\fs20\ql contradiction with FDA laws and regulations, FDA may issue warning letters that require specific remedial\plain\cf1\f51\fs20\ql measures to be taken, as well as an immediate cessation of the impermissible conduct, resulting in adverse\plain\cf1\f51\fs20\ql publicity. FDA may also require that all future promotional materials receive prior agency review and approval\plain\cf1\f51\fs20\ql before use. Certain states have also adopted regulations and reporting requirements surrounding the promotion of\plain\cf1\f51\fs20\ql pharmaceuticals. Qsymia, PANCREAZE and STENDRA are subject to these regulations. Failure by us or any of\plain\cf1\f51\fs20\ql our collaborators to comply with state requirements may affect our ability to promote or sell pharmaceutical drugs\plain\cf1\f51\fs20\ql in certain states. This, in turn, could have a material adverse impact on our financial results and financial\plain\cf1\f51\fs20\ql condition and could subject us to significant liability, including civil and administrative remedies as well as\plain\sa132\cf1\f51\fs20\ql criminal sanctions.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We are subject to ongoing regulatory obligations and restrictions, which may result in significant expense or\plain\sa132\cf1\f51\fs20\b\i\ql limit our ability to commercialize our drugs.\par\pard\plain\fi792\cf1\f51\fs20\ql We are required to comply with extensive regulations for drug manufacturing, labeling, packaging,\plain\cf1\f51\fs20\ql adverse event reporting, storage, distribution, advertising, promotion and record keeping in connection with the\plain\cf1\f51\fs20\ql marketing of Qsymia and STENDRA. Regulatory approvals may also be subject to significant limitations on the\plain\cf1\f51\fs20\ql indicated uses or marketing of the investigational drug candidates or to whom and how we may distribute our\plain\cf1\f51\fs20\ql products. Even after FDA approval is obtained, FDA may still impose significant restrictions on a drug\u8217?s\plain\cf1\f51\fs20\ql indicated uses or marketing or impose ongoing requirements for REMS or potentially costly post-approval studies.\plain\cf1\f51\fs20\ql For example, the labeling approved for Qsymia includes restrictions on use, including recommendations for\plain\cf1\f51\fs20\ql pregnancy testing, level of obesity and duration of treatment. We are subject to ongoing regulatory obligations and\plain\cf1\f51\fs20\ql restrictions that may result in significant expense and limit our ability to commercialize Qsymia. FDA has also\plain\cf1\f51\fs20\ql required the distribution of a Medication Guide to Qsymia patients outlining the increased risk of teratogenicity\plain\cf1\f51\fs20\ql with fetal exposure and the possibility of suicidal thinking or behavior. In addition, FDA has required a REMS\plain\cf1\f51\fs20\ql that may act to limit access to the drug, reduce our revenues and/or increase our costs. FDA may modify the\plain\sa132\cf1\f51\fs20\ql Qsymia REMS in the future to be more or less restrictive.\par\pard\plain\fi792\cf1\f51\fs20\ql In addition, Qsymia is a controlled substance and subject to DEA and state regulations relating to\plain\cf1\f51\fs20\ql manufacturing, storage, record keeping, reporting, distribution and prescription procedures and requirements\plain\cf1\f51\fs20\ql related to necessary DEA registrations and state licenses. The DEA periodically inspects facilities for compliance\plain\cf1\f51\fs20\ql with its rules and regulations. Failure to comply with current and future regulations of the DEA, relevant state\plain\cf1\f51\fs20\ql authorities or any comparable international requirements could lead to a variety of sanctions, including revocation\plain\cf1\f51\fs20\ql or denial of renewal of DEA registrations, fines, injunctions, or civil or criminal penalties, and could result in,\plain\cf1\f51\fs20\ql among other things, additional operating costs to us or delays in distribution of Qsymia and could have an adverse\plain\sa132\cf1\f51\fs20\ql effect on our business and financial condition.\par\pard\plain\fi792\cf1\f51\fs20\ql Even if we maintain FDA approval, or receive a marketing authorization from the EC, and other\plain\cf1\f51\fs20\ql regulatory approvals, if we or others identify adverse side effects after any of our products are on the market, or if\plain\cf1\f51\fs20\ql manufacturing problems occur, regulatory approval or EU marketing authorization may be varied, suspended or\plain\cf1\f51\fs20\ql withdrawn and reformulation of our products, additional clinical trials, changes in labeling and additional\plain\cf1\f51\fs20\ql marketing applications may be required, any of which could harm our business and cause our stock price to\plain\sa132\cf1\f51\fs20\ql decline.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We and our contract manufacturers are subject to significant regulation with respect to manufacturing of our\plain\sa132\cf1\f51\fs20\b\i\ql products.\par\pard\plain\fi792\cf1\f51\fs20\ql All of those involved in the preparation of a therapeutic drug for clinical trials or commercial sale,\plain\cf1\f51\fs20\ql including our existing supply contract manufacturers, and clinical trial investigators, are subject to extensive\plain\cf1\f51\fs20\ql regulation. Components of a finished drug product approved for commercial sale or used in late-stage clinical\plain\cf1\f51\fs20\ql trials must be manufactured in accordance with current cGMP. These regulations govern quality control of the\plain\cf1\f51\fs20\ql manufacturing processes and documentation policies and procedures, and the implementation and operation of\plain\cf1\f51\fs20\ql quality systems to control and assure the quality of investigational products and products approved for sale. Our\plain\cf1\f51\fs20\ql facilities and quality systems and the facilities and quality systems of our third-party contractors must be\plain\sa132\cf1\f51\fs20\ql inspected\par\pard\plain\cf1\f51\fs20\qc 53\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql routinely for compliance. If any such inspection or audit identifies a failure to comply with applicable regulations\plain\cf1\f51\fs20\ql or if a violation of our product specifications or applicable regulation occurs independent of such an inspection or\plain\cf1\f51\fs20\ql audit, we or FDA may require remedial measures that may be costly and/or time consuming for us or a third\plain\cf1\f51\fs20\ql party to implement and that may include the issuance of a warning letter, temporary or permanent suspension of a\plain\cf1\f51\fs20\ql clinical trial or commercial sales, recalls, market withdrawals, seizures, or the temporary or permanent closure of a\plain\cf1\f51\fs20\ql facility. Any such remedial measures would be imposed upon us or third parties with whom we contract until\plain\cf1\f51\fs20\ql satisfactory cGMP compliance is achieved. FDA could also impose civil penalties. We must also comply with\plain\sa132\cf1\f51\fs20\ql similar regulatory requirements of foreign regulatory agencies.\par\pard\plain\fi792\cf1\f51\fs20\ql We obtain the necessary raw materials and components for the manufacture of Qsymia and STENDRA as\plain\cf1\f51\fs20\ql well as certain services, such as analytical testing packaging and labeling, from third parties. In particular, we rely\plain\cf1\f51\fs20\ql on Catalent to supply Qsymia capsules and Packaging Coordinators,\~Inc. (\u8220?PCI\u8221?) for Qsymia\plain\cf1\f51\fs20\ql packaging services. We rely on Sanofi Chimie and Sanofi Winthrop to supply avanafil API and tablets. We and\plain\cf1\f51\fs20\ql these suppliers and service providers are required to follow cGMP requirements and are subject to routine and\plain\cf1\f51\fs20\ql unannounced inspections by FDA and by state and foreign regulatory agencies for compliance with cGMP\plain\cf1\f51\fs20\ql requirements and other applicable regulations. Upon inspection of these facilities, FDA or foreign regulatory\plain\cf1\f51\fs20\ql agencies may find the manufacturing process or facilities are not in compliance with cGMP requirements and\plain\cf1\f51\fs20\ql other regulations. Because manufacturing processes are highly complex and are subject to a lengthy regulatory\plain\sa132\cf1\f51\fs20\ql approval process, alternative qualified supply may not be available on a timely basis or at all.\par\pard\plain\fi792\cf1\f51\fs20\ql Difficulties, problems or delays in our suppliers and service providers\u8217? manufacturing and supply\plain\cf1\f51\fs20\ql of raw materials, components and services could delay our clinical trials, increase our costs, damage our\plain\sa132\cf1\f51\fs20\ql reputation and cause us to lose revenue or market share if we are unable to timely meet market demands.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql If we fail to comply with our reporting and payment obligations under the Medicaid Drug Rebate program or\plain\cf1\f51\fs20\b\i\ql other governmental pricing programs, we could be subject to additional reimbursement requirements, penalties,\plain\cf1\f51\fs20\b\i\ql sanctions and fines, which could have a material adverse effect on our business, financial condition, results of\plain\sa132\cf1\f51\fs20\b\i\ql operations and growth prospects.\par\pard\plain\fi792\cf1\f51\fs20\ql We participate in the Medicaid Drug Rebate program, established by the Omnibus Budget Reconciliation\plain\cf1\f51\fs20\ql Act of 1990 and amended by the Veterans Health Care Act of 1992 as well as subsequent legislation. Under the\plain\cf1\f51\fs20\ql Medicaid Drug Rebate program, we are required to pay a rebate to each state Medicaid program for our covered\plain\cf1\f51\fs20\ql outpatient drugs that are dispensed to Medicaid beneficiaries and paid for by a state Medicaid program as a\plain\cf1\f51\fs20\ql condition of having federal funds being made available to the states for our drugs under Medicaid and Medicare\plain\cf1\f51\fs20\ql Part\~B. Those rebates are based on pricing data reported by us on a monthly and quarterly basis to CMS, the\plain\cf1\f51\fs20\ql federal agency that administers the Medicaid Drug Rebate program. These data include the average manufacturer\plain\cf1\f51\fs20\ql price and, in the case of innovator products, the best price for each drug, which, in general, represents the lowest\plain\cf1\f51\fs20\ql price available from the manufacturer to any entity in the U.S. in any pricing structure, calculated to include all\plain\cf1\f51\fs20\ql sales and associated rebates, discounts and other price concessions. Our failure to comply with these price\plain\sa132\cf1\f51\fs20\ql reporting and rebate payment options could negatively impact our financial results.\par\pard\plain\fi792\cf1\f51\fs20\ql The Affordable Care Act made significant changes to the Medicaid Drug Rebate program. Effective in\plain\cf1\f51\fs20\ql March\~2010, rebate liability expanded from fee-for-service Medicaid utilization to include the utilization of\plain\cf1\f51\fs20\ql Medicaid managed care organizations as well. With regard to the amount of the rebates owed, the Affordable\plain\cf1\f51\fs20\ql Care Act increased the minimum Medicaid rebate from 15.1% to 23.1% of the average manufacturer price for\plain\cf1\f51\fs20\ql most innovator products and from 11% to 13% for non-innovator products; changed the calculation of the rebate\plain\cf1\f51\fs20\ql for certain innovator products that qualify as line extensions of existing drugs; and capped the total rebate amount\plain\cf1\f51\fs20\ql at 100 percent of the average manufacturer price. In addition, the Affordable Care Act and subsequent legislation\plain\cf1\f51\fs20\ql changed the definition of average manufacturer price. Finally, the Affordable Care Act requires pharmaceutical\plain\cf1\f51\fs20\ql manufacturers of branded prescription drugs to pay a branded prescription drug fee to the federal government\plain\cf1\f51\fs20\ql beginning in 2011. Each individual pharmaceutical manufacturer pays a prorated share of the branded prescription\plain\cf1\f51\fs20\ql drug fee of $2.8 billion in 2019 and thereafter, based on the dollar value of its branded prescription drug sales to\plain\sa132\cf1\f51\fs20\ql certain federal programs identified in the law.\par\pard\plain\fi792\cf1\f51\fs20\ql CMS issued final regulations that became effective on April 1, 2016 to implement the changes to the\plain\cf1\f51\fs20\ql Medicaid Drug Rebate program under the Affordable Care Act. Moreover, certain legislative changes to and\plain\cf1\f51\fs20\ql regulatory changes under the Affordable Care Act have occurred in the 115th United States Congress and under\plain\sa132\cf1\f51\fs20\ql the\par\pard\plain\cf1\f51\fs20\qc 54\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql Trump Administration. For example, the Tax Cuts and Jobs Act enacted on December 22, 2017, eliminated the\plain\cf1\f51\fs20\ql individual mandate, beginning in 2019. Additional legislative changes to and regulatory changes under the\plain\cf1\f51\fs20\ql Affordable Care Act remain possible. We expect that the Affordable Care Act, as currently enacted or as it may\plain\cf1\f51\fs20\ql be amended in the future, and other healthcare reform measures that may be adopted in the future, could have a\plain\cf1\f51\fs20\ql material adverse effect on our industry generally and on our ability to maintain or increase sales of our existing\plain\cf1\f51\fs20\ql products or to successfully commercialize our product candidates, if approved. The issuance of regulations and\plain\cf1\f51\fs20\ql coverage expansion by various governmental agencies relating to the Medicaid Drug Rebate program has and will\plain\cf1\f51\fs20\ql continue to increase our costs and the complexity of compliance, has been and will be time consuming, and could\plain\sa132\cf1\f51\fs20\ql have a material adverse effect on our results of operations.\par\pard\plain\fi792\cf1\f51\fs20\ql Federal law requires that any company that participates in the Medicaid Drug Rebate program also\plain\cf1\f51\fs20\ql participate in the Public Health Service\u8217?s 340B drug pricing program in order for federal funds to be\plain\cf1\f51\fs20\ql available for the manufacturer\u8217?s drugs under Medicaid and Medicare Part\~B. The 340B program requires\plain\cf1\f51\fs20\ql participating manufacturers to agree to charge statutorily defined covered entities no more than the 340B\plain\cf1\f51\fs20\ql \u8220?ceiling price\u8221? for the manufacturer\u8217?s covered outpatient drugs. These 340B covered entities\plain\cf1\f51\fs20\ql include a variety of community health clinics and other entities that receive health services grants from the Public\plain\cf1\f51\fs20\ql Health Service, as well as hospitals that serve a disproportionate share of low-income patients. The Affordable\plain\cf1\f51\fs20\ql Care Act expanded the 340B program to include additional types of covered entities: certain free standing cancer\plain\cf1\f51\fs20\ql hospitals, critical access hospitals, rural referral centers and sole community hospitals, each as defined by the\plain\cf1\f51\fs20\ql Affordable Care Act, but exempts \u8220?orphan drugs\u8221? from the ceiling price requirements for these\plain\cf1\f51\fs20\ql covered entities. The 340B ceiling price is calculated using a statutory formula, which is based on the average\plain\cf1\f51\fs20\ql manufacturer price and rebate amount for the covered outpatient drug as calculated under the Medicaid Drug\plain\cf1\f51\fs20\ql Rebate program. Changes to the definition of average manufacturer price and the Medicaid rebate amount under\plain\cf1\f51\fs20\ql the Affordable Care Act and CMS\u8217?s issuance of final regulations implementing those changes also could\plain\sa132\cf1\f51\fs20\ql affect our 340B ceiling price calculations and negatively impact our results of operations.\par\pard\plain\fi792\cf1\f51\fs20\ql The Health Resources and Services Administration (\u8220?HRSA\u8221?), which administers the 340B\plain\cf1\f51\fs20\ql program, issued a final regulation regarding the calculation of the 340B ceiling price and the imposition of civil\plain\cf1\f51\fs20\ql monetary penalties on manufacturers that knowingly and intentionally overcharge covered entities, which became\plain\cf1\f51\fs20\ql effective on January 1, 2019. It is currently unclear how HRSA will apply its enforcement authority under the\plain\cf1\f51\fs20\ql new regulation. Implementation of this final rule and the issuance of any other final regulations and guidance\plain\cf1\f51\fs20\ql could affect our obligations under the 340B program in ways we cannot anticipate. HRSA also is implementing a\plain\cf1\f51\fs20\ql 340B ceiling price reporting requirement during the first quarter of 2019 pursuant to which we are required to\plain\cf1\f51\fs20\ql report the 340B ceiling prices for our covered outpatient drugs to HRSA on a quarterly basis. In addition,\plain\cf1\f51\fs20\ql legislation may be introduced that, if passed, would further expand the 340B program to additional covered\plain\cf1\f51\fs20\ql entities or would require participating manufacturers to agree to provide 340B discounted pricing on drugs used in\plain\sa132\cf1\f51\fs20\ql the inpatient setting.\par\pard\plain\fi792\cf1\f51\fs20\ql Pricing and rebate calculations vary among products and programs. The calculations are complex and are\plain\cf1\f51\fs20\ql often subject to interpretation by us, governmental or regulatory agencies and the courts. The Medicaid rebate\plain\cf1\f51\fs20\ql amount is computed each quarter based on our submission to CMS of our current average manufacturer prices and\plain\cf1\f51\fs20\ql best prices for the quarter. If we become aware that our reporting for a prior quarter was incorrect, or has changed\plain\cf1\f51\fs20\ql as a result of recalculation of the pricing data, we are obligated to resubmit the corrected data for a period not to\plain\cf1\f51\fs20\ql exceed 12 quarters from the quarter in which the data originally were due. Such restatements and recalculations\plain\cf1\f51\fs20\ql increase our costs for complying with the laws and regulations governing the Medicaid Drug Rebate program.\plain\cf1\f51\fs20\ql Any corrections to our rebate calculations could result in an overage or underage in our rebate liability for past\plain\cf1\f51\fs20\ql quarters, depending on the nature of the correction. Price recalculations also may affect the 340B ceiling price at\plain\cf1\f51\fs20\ql which we are required to offer our products to certain covered entities, and we may be required to issue refunds\plain\sa132\cf1\f51\fs20\ql to covered entities.\par\pard\plain\fi792\cf1\f51\fs20\ql We are liable for errors associated with our submission of pricing data. Civil monetary penalties can be\plain\cf1\f51\fs20\ql applied if we are found to have charged 340B covered entities more than the statutorily mandated ceiling price. In\plain\cf1\f51\fs20\ql addition to retroactive rebates and the potential for 340B program refunds, if we are found to have knowingly\plain\cf1\f51\fs20\ql submitted false average manufacturer price or best price information to the government, we may be liable for\plain\cf1\f51\fs20\ql significant civil monetary penalties per item of false information. Our failure to submit monthly/quarterly average\plain\cf1\f51\fs20\ql manufacturer price and best price data on a timely basis could result in a significant civil monetary penalty per\plain\cf1\f51\fs20\ql day for each day the information is late beyond the due date. Such failure also could be grounds for CMS to\plain\cf1\f51\fs20\ql terminate our Medicaid drug rebate agreement, pursuant to which we participate in the Medicaid program. In the\plain\cf1\f51\fs20\ql event that CMS terminates our rebate agreement, no federal payments would be available under Medicaid or\plain\sa132\cf1\f51\fs20\ql Medicare Part\~B for our covered outpatient drugs.\par\pard\plain\cf1\f51\fs20\qc 55\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\fi792\cf1\f51\fs20\ql CMS and the Office of the Inspector General have pursued manufacturers that were alleged to have failed\plain\cf1\f51\fs20\ql to report these data to the government in a timely manner. Governmental agencies may also make changes in\plain\cf1\f51\fs20\ql program interpretations, requirements or conditions of participation, some of which may have implications for\plain\cf1\f51\fs20\ql amounts previously estimated or paid. We cannot assure you that our submissions will not be found by CMS to\plain\sa132\cf1\f51\fs20\ql be incomplete or incorrect.\par\pard\plain\fi792\cf1\f51\fs20\ql If we misstate Non-FAMPs or FCPs, we must restate these figures. Additionally, pursuant to the VHCA,\plain\cf1\f51\fs20\ql knowing provision of false information in connection with a Non-FAMP filing can subject us to penalties of\plain\cf1\f51\fs20\ql $181,071 for each item of false information. If we overcharge the government in connection with our FSS\plain\cf1\f51\fs20\ql contract or the Tricare Retail Pharmacy Program, whether due to a misstated FCP or otherwise, we are required to\plain\cf1\f51\fs20\ql refund the difference to the government. Failure to make necessary disclosures and/or to identify contract\plain\cf1\f51\fs20\ql overcharges can result in allegations against us under the False Claims Act and other laws and regulations.\plain\cf1\f51\fs20\ql Unexpected refunds to the government, and responding to a government investigation or enforcement action,\plain\cf1\f51\fs20\ql would be expensive and time-consuming, and could have a material adverse effect on our business, financial\plain\sa132\cf1\f51\fs20\ql condition, results of operations and growth prospects.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Changes in reimbursement procedures by government and other third-party payors, including changes in\plain\cf1\f51\fs20\b\i\ql healthcare law and implementing regulations, may limit our ability to market and sell our approved drugs, or\plain\cf1\f51\fs20\b\i\ql any future drugs, if approved, may limit our product revenues and delay profitability, and may impact our\plain\cf1\f51\fs20\b\i\ql business in ways that we cannot currently predict. These changes could have a material adverse effect on our\plain\sa132\cf1\f51\fs20\b\i\ql business and financial condition.\par\pard\plain\fi792\cf1\f51\fs20\ql In the U.S. and abroad, sales of pharmaceutical drugs are dependent, in part, on the availability of\plain\cf1\f51\fs20\ql reimbursement to the consumer from third-party payors, such as government and private insurance plans.\plain\cf1\f51\fs20\ql Third-party payors are increasingly challenging the prices charged for medical products and services. Some\plain\cf1\f51\fs20\ql third-party payor benefit packages restrict reimbursement, charge co-pays to patients, or do not provide coverage\plain\sa132\cf1\f51\fs20\ql for specific drugs or drug classes.\par\pard\plain\fi792\cf1\f51\fs20\ql In addition, certain healthcare providers are moving towards a managed care system in which such\plain\cf1\f51\fs20\ql providers contract to provide comprehensive healthcare services, including prescription drugs, for a fixed cost per\plain\sa132\cf1\f51\fs20\ql person. We are unable to predict the reimbursement policies employed by third-party healthcare payors.\par\pard\plain\fi792\cf1\f51\fs20\ql Payors also are increasingly considering new metrics as the basis for reimbursement rates, such as\plain\cf1\f51\fs20\ql average sales price, average manufacturer price and Actual Acquisition Cost. CMS, the federal agency that\plain\cf1\f51\fs20\ql administers Medicare and the Medicaid Drug Rebate program, surveys and publishes retail community pharmacy\plain\cf1\f51\fs20\ql acquisition cost information in the form of National Average Drug Acquisition Cost files to provide state\plain\cf1\f51\fs20\ql Medicaid agencies with a basis of comparison for their own reimbursement and pricing methodologies and rates.\plain\cf1\f51\fs20\ql It is difficult to project the impact of these evolving reimbursement mechanics on the willingness of payors to\plain\sa132\cf1\f51\fs20\ql cover our products.\par\pard\plain\fi792\cf1\f51\fs20\ql The healthcare industry in the U.S. and abroad is undergoing fundamental changes that are the result of\plain\cf1\f51\fs20\ql political, economic and regulatory influences. The levels of revenue and profitability of pharmaceutical companies\plain\cf1\f51\fs20\ql may be affected by the continuing efforts of governmental and third-party payors to contain or reduce healthcare\plain\cf1\f51\fs20\ql costs through various means. Reforms that have been and may be considered include mandated basic healthcare\plain\cf1\f51\fs20\ql benefits, controls on healthcare spending through limitations on the increase in private health insurance premiums\plain\cf1\f51\fs20\ql and the types of drugs eligible for reimbursement and Medicare and Medicaid spending, the creation of large\plain\cf1\f51\fs20\ql insurance purchasing groups, and fundamental changes to the healthcare delivery system. These include measures\plain\cf1\f51\fs20\ql that limit or prohibit payments for some medical treatments or subject the pricing of drugs to government control\plain\cf1\f51\fs20\ql and regulations changing the rebates we are required to provide, and proposals that would do so. Further, federal\plain\cf1\f51\fs20\ql budgetary concerns could result in the implementation of significant federal spending cuts, including cuts in\plain\cf1\f51\fs20\ql Medicare and other health related spending in the near-term. For example, beginning April 1, 2013, Medicare\plain\cf1\f51\fs20\ql payments for all items and services, including drugs and biologics, were reduced by 2% under the sequestration\plain\cf1\f51\fs20\ql (i.e., automatic spending reductions) required by the Budget Control Act of 2011, as amended by the American\plain\cf1\f51\fs20\ql Taxpayer Relief Act of 2012. Subsequent legislation extended the 2% reduction, on average, to 2027. These cuts\plain\sa132\cf1\f51\fs20\ql reduce reimbursement payments related to our products, which could potentially negatively impact our revenue.\par\pard\plain\fi792\cf1\f51\fs20\ql In March\~2010, the President signed the Affordable Care Act. The Affordable Care Act substantially\plain\sa132\cf1\f51\fs20\ql changed the way healthcare is financed by both governmental and private insurers, and could have a material\par\pard\plain\cf1\f51\fs20\qc 56\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql adverse effect on our future business, cash flows, financial condition and results of operations, including by\plain\sa132\cf1\f51\fs20\ql operation of the following provisions:
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Effective in March\~2010, rebate liability expanded from fee-for-service Medicaid utilization to\plain\intbl\sa132\cf1\f51\fs20\ql include the utilization of Medicaid managed care organizations as well.\cell{
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql With regard to the amount of the rebates owed, the Affordable Care Act increased the minimum\plain\intbl\cf1\f51\fs20\ql Medicaid rebate from 15.1% to 23.1% of the average manufacturer price for most innovator products\plain\intbl\cf1\f51\fs20\ql and from 11% to 13% for non-innovator products; changed the calculation of the rebate for certain\plain\intbl\cf1\f51\fs20\ql innovator products that qualify as line extensions of existing drugs; and capped the total rebate\plain\intbl\sa132\cf1\f51\fs20\ql amount at 100 percent of the average manufacturer price.\cell{
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Effective in January 2011, pharmaceutical companies were required to provide a 50 percent discount\plain\intbl\cf1\f51\fs20\ql on branded prescription drugs dispensed to beneficiaries during their Medicare Part\~D coverage gap\plain\intbl\cf1\f51\fs20\ql period or \u8220?donut hole,\u8221? which is a coverage gap that currently exists in the Medicare\plain\intbl\cf1\f51\fs20\ql Part\~D prescription drug program. The BBA increased such manufacturer point-of-sale discounts to\plain\intbl\cf1\f51\fs20\ql 70% effective as of January 1, 2019. We currently do not have coverage under Medicare Part\~D for\plain\intbl\sa132\cf1\f51\fs20\ql our drugs, but this could change in the future.\cell{
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Effective in January 2011, the Affordable Care Act requires pharmaceutical manufacturers of branded\plain\intbl\cf1\f51\fs20\ql prescription drugs to pay an annual, nondeductible, branded prescription drug fee to the federal\plain\intbl\cf1\f51\fs20\ql government, which is apportioned among pharmaceutical manufacturers according to their market\plain\intbl\cf1\f51\fs20\ql share in certain government healthcare programs, although this fee does not apply to sales of certain\plain\intbl\cf1\f51\fs20\ql products approved exclusively for orphan indications. Each individual pharmaceutical manufacturer\plain\intbl\cf1\f51\fs20\ql pays a prorated share of the branded prescription drug fee of $2.8 billion in 2019 and thereafter,\plain\intbl\cf1\f51\fs20\ql based on the dollar value of its branded prescription drug sales to certain federal programs identified\plain\intbl\sa132\cf1\f51\fs20\ql in the law.\cell{
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Some states have elected to expand their Medicaid programs by raising the income limit to\plain\intbl\cf1\f51\fs20\ql 133% of the federal poverty level. For each state that does not choose to expand its\plain\intbl\cf1\f51\fs20\ql Medicaid program, there may be fewer insured patients overall, which could impact our\plain\intbl\cf1\f51\fs20\ql sales, business and financial condition. We expect any Medicaid expansion to impact the\plain\intbl\cf1\f51\fs20\ql number of adults in Medicaid more than children because many states have already set their\plain\intbl\cf1\f51\fs20\ql eligibility criteria for children at or above the level designated in the Affordable Care Act.\plain\intbl\cf1\f51\fs20\ql An increase in the proportion of patients who receive our drugs and who are covered by\plain\intbl\sa132\cf1\f51\fs20\ql Medicaid could adversely affect our net sales revenue.\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh2115\row}}}\pard\plain\fi792\cf1\f51\fs20\ql CMS issued final regulations that became effective on April 1, 2016 to implement the changes to the\plain\sa132\cf1\f51\fs20\ql Medicaid Drug Rebate Program under the Affordable Care Act.\par\pard\plain\fi792\cf1\f51\fs20\ql There can be no assurance that future healthcare legislation or other changes in the administration or\plain\cf1\f51\fs20\ql interpretation of government healthcare or third-party reimbursement programs will not have a material adverse\plain\cf1\f51\fs20\ql effect on us. Healthcare reform is also under consideration in other countries where we intend to market Qsymia.\plain\cf1\f51\fs20\ql Some of the provisions of the Affordable Care Act have yet to be fully implemented, and certain provisions have\plain\cf1\f51\fs20\ql been subject to judicial and Congressional challenges. In addition, there have been efforts by the Trump\plain\cf1\f51\fs20\ql administration to repeal or replace certain aspects of the Affordable Care Act and to alter the implementation of\plain\cf1\f51\fs20\ql the Affordable Care Act and related laws. For example, the Tax Cuts and Jobs Act enacted on December 22,\plain\cf1\f51\fs20\ql 2017, eliminated the individual mandate, beginning in 2019. Additional legislative changes, regulatory changes,\plain\cf1\f51\fs20\ql and judicial challenges related to the Affordable Care Act remain possible. We expect that the Affordable Care\plain\cf1\f51\fs20\ql Act, as currently enacted or as it may be amended in the future, and other healthcare reform measures that may be\plain\cf1\f51\fs20\ql adopted in the future, could have a material adverse effect on our industry generally and on our ability to\plain\cf1\f51\fs20\ql maintain or increase sales of our existing products or to successfully commercialize our product candidates, if\plain\sa132\cf1\f51\fs20\ql approved.\par\pard\plain\fi792\cf1\f51\fs20\ql We expect to experience pricing and reimbursement pressures in connection with the sale of Qsymia,\plain\cf1\f51\fs20\ql STENDRA and our investigational drug candidates, if approved, due to the trend toward managed healthcare, the\plain\cf1\f51\fs20\ql increasing influence of health maintenance organizations and additional legislative and regulatory actions. In\plain\cf1\f51\fs20\ql addition, we may confront limitations in insurance coverage for Qsymia, STENDRA and our investigational drug\plain\cf1\f51\fs20\ql candidates. For example, the Medicare program generally does not provide coverage for drugs used to treat\plain\cf1\f51\fs20\ql erectile dysfunction or drugs used to treat obesity. Similarly, other insurers may determine that such products are\plain\sa132\cf1\f51\fs20\ql not covered under their programs. If we fail to successfully secure and maintain reimbursement coverage for our\par\pard\plain\cf1\f51\fs20\qc 57\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql approved drugs and investigational drug candidates or are significantly delayed in doing so, we will have\plain\cf1\f51\fs20\ql difficulty achieving market acceptance of our approved drugs and investigational drug candidates and our business\plain\cf1\f51\fs20\ql will be harmed. Congress has enacted healthcare reform and may enact further reform, which could adversely\plain\sa132\cf1\f51\fs20\ql affect the pharmaceutical industry as a whole, and therefore could have a material adverse effect on our business.\par\pard\plain\fi792\cf1\f51\fs20\ql Both of the active pharmaceutical ingredients in Qsymia, phentermine and topiramate, are available as\plain\cf1\f51\fs20\ql single ingredient generic products and do not have a REMS requirement. The exact doses of the active ingredients\plain\cf1\f51\fs20\ql in Qsymia are different than those currently available for the generic components. State pharmacy laws prohibit\plain\cf1\f51\fs20\ql pharmacists from substituting drugs with differing doses and formulations. The safety and efficacy of Qsymia is\plain\cf1\f51\fs20\ql dependent on the titration, dosing and formulation, which we believe could not be easily duplicated, if at all, with\plain\cf1\f51\fs20\ql the use of generic substitutes. However, there can be no assurance that we will be able to provide for optimal\plain\cf1\f51\fs20\ql reimbursement of Qsymia as a treatment for obesity or, if approved, for any other indication, from third-party\plain\cf1\f51\fs20\ql payors or the U.S. government. Furthermore, there can be no assurance that healthcare providers would not\plain\cf1\f51\fs20\ql actively seek to provide patients with generic versions of the active ingredients in Qsymia in order to treat obesity\plain\sa132\cf1\f51\fs20\ql at a potential lower cost and outside of the REMS requirements.\par\pard\plain\fi792\cf1\f51\fs20\ql An increasing number of EU Member States and other foreign countries use prices for medicinal products\plain\cf1\f51\fs20\ql established in other countries as \u8220?reference prices\u8221? to help determine the price of the product in their\plain\cf1\f51\fs20\ql own territory. Consequently, a downward trend in prices of medicinal products in some countries could contribute\plain\cf1\f51\fs20\ql to similar downward trends elsewhere. In addition, the ongoing budgetary difficulties faced by a number of EU\plain\cf1\f51\fs20\ql Member States, including Greece and Spain, have led and may continue to lead to substantial delays in payment\plain\cf1\f51\fs20\ql and payment partially with government bonds rather than cash for medicinal products, which could negatively\plain\cf1\f51\fs20\ql impact our revenues and profitability. Moreover, in order to obtain reimbursement of our medicinal products in\plain\cf1\f51\fs20\ql some countries, including some EU Member States, we may be required to conduct clinical trials that compare the\plain\cf1\f51\fs20\ql cost effectiveness of our products to other available therapies. There can be no assurance that our medicinal\plain\cf1\f51\fs20\ql products will obtain favorable reimbursement status in any country. For more information concerning pricing and\plain\cf1\f51\fs20\ql reimbursement of medicinal products in the EU and, in particular, the impact of HTA, please refer to the section\plain\sa132\cf1\f51\fs20\ql titled \u8220?Government Regulation - Coverage and Reimbursement.\u8221?\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Setbacks and consolidation in the pharmaceutical and biotechnology industries, and our, or our\plain\cf1\f51\fs20\b\i\ql collaborators\u8217?, inability to obtain third-party coverage and adequate reimbursement, could make\plain\sa132\cf1\f51\fs20\b\i\ql partnering more difficult and diminish our revenues.\par\pard\plain\fi792\cf1\f51\fs20\ql Setbacks in the pharmaceutical and biotechnology industries, such as those caused by safety concerns\plain\cf1\f51\fs20\ql relating to high-profile drugs like Avandia\u174?, Vioxx\u174? and Celebrex\u174?, or investigational drug\plain\cf1\f51\fs20\ql candidates, as well as competition from generic drugs, litigation, and industry consolidation, may have an adverse\plain\cf1\f51\fs20\ql effect on us. For example, pharmaceutical companies may be less willing to enter into new collaborations or\plain\cf1\f51\fs20\ql continue existing collaborations if they are integrating a new operation as a result of a merger or acquisition or if\plain\cf1\f51\fs20\ql their therapeutic areas of focus change following a merger. Moreover, our and our collaborators\u8217? ability to\plain\cf1\f51\fs20\ql commercialize any of our approved drugs or future investigational drug candidates will depend in part on\plain\cf1\f51\fs20\ql government regulation and the availability of coverage and adequate reimbursement from third-party payors,\plain\cf1\f51\fs20\ql including private health insurers and government payors, such as the Medicaid and Medicare programs, increases\plain\cf1\f51\fs20\ql in government-run, single-payor health insurance plans and compulsory licenses of drugs. Government and\plain\cf1\f51\fs20\ql third-party payors are increasingly attempting to contain healthcare costs by limiting coverage and reimbursement\plain\cf1\f51\fs20\ql levels for new drugs. Given the continuing discussion regarding the cost of healthcare, managed care, universal\plain\cf1\f51\fs20\ql healthcare coverage and other healthcare issues, we cannot predict with certainty what additional healthcare\plain\cf1\f51\fs20\ql initiatives, if any, will be implemented or the effect any future legislation or regulation will have on our business.\plain\cf1\f51\fs20\ql These efforts may limit our commercial opportunities by reducing the amount a potential collaborator is willing to\plain\cf1\f51\fs20\ql pay to license our programs or investigational drug candidates in the future due to a reduction in the potential\plain\cf1\f51\fs20\ql revenues from drug sales. Adoption of legislation and regulations could limit pricing approvals for, and\plain\cf1\f51\fs20\ql reimbursement of, drugs. A government or third-party payor decision not to approve pricing for, or provide\plain\sa132\cf1\f51\fs20\ql adequate coverage and reimbursements of, our drugs could limit market acceptance of these drugs.\par\pard\plain\cf1\f51\fs20\qc 58\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\sa132\cf1\f51\fs20\b\i\ql Our business and operations would suffer in the event of system failures.\par\pard\plain\fi792\cf1\f51\fs20\ql Despite the implementation of security measures, our internal computer systems and those of our contract\plain\cf1\f51\fs20\ql sales organization (\u8220?CSO\u8221?), CROs, safety monitoring company and other contractors and consultants\plain\cf1\f51\fs20\ql are vulnerable to damage from computer viruses, unauthorized access, natural disasters, accidents, terrorism, war\plain\cf1\f51\fs20\ql and telecommunication and electrical failures. While we have not experienced any such system failure, accident or\plain\cf1\f51\fs20\ql security breach to date, if such an event were to occur and cause interruptions in our operations, it could result in\plain\cf1\f51\fs20\ql a material disruption of our investigational drug candidate development programs and drug manufacturing\plain\cf1\f51\fs20\ql operations. For example, the loss of clinical trial data from completed or ongoing clinical trials for our\plain\cf1\f51\fs20\ql investigational drug candidates could result in delays in our regulatory approval efforts with FDA, the EC, or the\plain\cf1\f51\fs20\ql competent authorities of the EU Member States, and significantly increase our costs to recover or reproduce the\plain\cf1\f51\fs20\ql data. To the extent that any disruption or security breach was to result in a loss of or damage to our data or\plain\cf1\f51\fs20\ql applications, or inappropriate disclosure of confidential or proprietary information, we could incur liability and the\plain\cf1\f51\fs20\ql further development of our investigational drug candidates, or commercialization of our approved drugs, could be\plain\cf1\f51\fs20\ql delayed. If we are unable to restore our information systems in the event of a systems failure, our\plain\cf1\f51\fs20\ql communications, daily operations and the ability to develop our investigational drug candidates and approved drug\plain\sa132\cf1\f51\fs20\ql commercialization efforts would be severely affected.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Natural disasters or resource shortages could disrupt our investigational drug candidate development and\plain\sa132\cf1\f51\fs20\b\i\ql approved drug commercialization efforts and adversely affect results.\par\pard\plain\fi792\cf1\f51\fs20\ql Our ongoing or planned clinical trials and approved drug commercialization efforts could be delayed or\plain\cf1\f51\fs20\ql disrupted indefinitely upon the occurrence of a natural disaster. For example, Hurricane Sandy in October\~2012,\plain\cf1\f51\fs20\ql hindered our Qsymia sales efforts. In 2005, our clinical trials in the New Orleans area were interrupted by\plain\cf1\f51\fs20\ql Hurricane Katrina. In addition, our offices are located in the San Francisco Bay Area near known earthquake fault\plain\cf1\f51\fs20\ql zones and are therefore vulnerable to damage from earthquakes. In October\~1989, a major earthquake in our area\plain\cf1\f51\fs20\ql caused significant property damage and a number of fatalities. We are also vulnerable to damage from other\plain\cf1\f51\fs20\ql disasters, such as power loss, fire, floods and similar events. If a significant disaster occurs, our ability to continue\plain\cf1\f51\fs20\ql our operations could be seriously impaired and we may not have adequate insurance to cover any resulting losses.\plain\sa132\cf1\f51\fs20\ql Any significant unrecoverable losses could seriously impair our operations and financial condition. \~\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Brexit may harm our ability to market our products, to do business, increase our costs and negatively affect\plain\sa132\cf1\f51\fs20\b\i\ql our stock price.\par\pard\plain\fi792\cf1\f51\fs20\ql Worldwide economic conditions remain uncertain due to various developments including the decision by\plain\cf1\f51\fs20\ql the United Kingdom to initiate the formal procedure of withdrawal from the EU (often referred to as\plain\cf1\f51\fs20\ql \u8220?Brexit\u8221?), current economic challenges in Asia and other disruptions to global and regional\plain\sa132\cf1\f51\fs20\ql economies and markets.\par\pard\plain\fi792\cf1\f51\fs20\ql Brexit has created significant uncertainty about the future relationship between the United Kingdom and\plain\cf1\f51\fs20\ql the EU, including with respect to the laws and regulations that will apply as the United Kingdom determines\plain\cf1\f51\fs20\ql which EU laws to replace or replicate in the event of a withdrawal. From a regulatory perspective, the United\plain\cf1\f51\fs20\ql Kingdom's withdrawal from the EU could give rise to significant complexity and risks. In addition, the exact\plain\cf1\f51\fs20\ql terms of the United Kingdom's withdrawal and the laws and regulations that will apply after the United Kingdom\plain\cf1\f51\fs20\ql withdraws from the EU may affect manufacturing sites that hold an EU manufacturing authorization issued by the\plain\sa132\cf1\f51\fs20\ql United Kingdom competent authorities.\par\pard\plain\sa132\cf1\f51\fs20\ql \~\par\pard\plain\sb132\sa132\cf1\f51\fs24\b\ql Risks Relating to our Intellectual Property\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Obtaining intellectual property rights is a complex process, and we may be unable to adequately protect our\plain\sa132\cf1\f51\fs20\b\i\ql proprietary technologies.\par\pard\plain\fi792\cf1\f51\fs20\ql We hold various patents and patent applications in the U.S. and abroad targeting obesity and morbidities\plain\cf1\f51\fs20\ql related to obesity, including sleep apnea and diabetes, and sexual health, among other indications. The procedures\plain\cf1\f51\fs20\ql for obtaining a patent in the U.S. and in most foreign countries are complex. These procedures require an analysis\plain\sa132\cf1\f51\fs20\ql of\par\pard\plain\cf1\f51\fs20\qc 59\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql the scientific technology related to the invention and many sophisticated legal issues. Consequently, the process\plain\cf1\f51\fs20\ql for having our pending patent applications issue as patents will be difficult, complex and time consuming. We do\plain\cf1\f51\fs20\ql not know when, or if, we will obtain additional patents for our technologies, or if the scope of the patents\plain\cf1\f51\fs20\ql obtained will be sufficient to protect our investigational drug candidates or products, or be considered sufficient\plain\sa132\cf1\f51\fs20\ql by parties reviewing our patent positions pursuant to a potential licensing or financing transaction.\par\pard\plain\fi792\cf1\f51\fs20\ql In addition, we cannot make assurances as to how much protection, if any, will be provided by our\plain\cf1\f51\fs20\ql issued patents. Our existing patents and any future patents we obtain may not be sufficiently broad to prevent\plain\cf1\f51\fs20\ql others from practicing our technologies or from developing competing products. Others may independently\plain\cf1\f51\fs20\ql develop similar or alternative technologies or design around our patented technologies or products. For example,\plain\cf1\f51\fs20\ql we have limited patent coverage for PANCREAZE, which would not protect us should others develop alternative\plain\cf1\f51\fs20\ql formulations of the drug. These companies would then be able to develop, manufacture and sell products that\plain\sa132\cf1\f51\fs20\ql compete directly with our products. In that case, our revenues and operating results could decline.\par\pard\plain\fi792\cf1\f51\fs20\ql Other entities may also challenge the validity or enforceability of our patents and patent applications in\plain\cf1\f51\fs20\ql litigation or administrative proceedings. The sponsor of a generic application seeking to rely on one of our\plain\cf1\f51\fs20\ql approved drug products as the reference listed drug must make one of several certifications regarding each listed\plain\cf1\f51\fs20\ql patent. A \u8220?Paragraph\~III\u8221? certification is the sponsor\u8217?s statement that it will wait for the patent\plain\cf1\f51\fs20\ql to expire before obtaining approval for its product. A \u8220?Paragraph\~IV\u8221? certification is a challenge to\plain\cf1\f51\fs20\ql the patent; it is an assertion that the patent does not block approval of the later product, either because the patent\plain\cf1\f51\fs20\ql is invalid or unenforceable or because the patent, even if valid, is not infringed by the new product. Once FDA\plain\cf1\f51\fs20\ql accepts for filing a generic application containing a Paragraph\~IV certification, the applicant must within 20\~days\plain\cf1\f51\fs20\ql provide notice to the reference listed drug (\u8220?RLD\u8221?) NDA holder and patent owner that the\plain\cf1\f51\fs20\ql application with patent challenge has been submitted, and provide the factual and legal basis for the\plain\cf1\f51\fs20\ql applicant\u8217?s assertion that the patent is invalid or not infringed. If the NDA holder or patent owner file suit\plain\cf1\f51\fs20\ql against the generic applicant for patent infringement within 45\~days of receiving the Paragraph\~IV notice, FDA is\plain\cf1\f51\fs20\ql prohibited from approving the generic application for a period of 30\~months from the date of receipt of the notice.\plain\cf1\f51\fs20\ql If the RLD has new chemical entity exclusivity and the notice is given and suit filed during the fifth year of\plain\cf1\f51\fs20\ql exclusivity, the 30-month stay does not begin until five years after the RLD approval. FDA may approve the\plain\cf1\f51\fs20\ql proposed product before the expiration of the 30-month stay if a court finds the patent invalid or not infringed or\plain\cf1\f51\fs20\ql if the court shortens the period because the parties have failed to cooperate in expediting the litigation. If a\plain\cf1\f51\fs20\ql competitor or a generic pharmaceutical provider successfully challenges our patents, the protection provided by\plain\cf1\f51\fs20\ql these patents could be reduced or eliminated and our ability to commercialize any approved drugs would be at\plain\cf1\f51\fs20\ql risk. In addition, if a competitor or generic manufacturer were to receive approval to sell a generic or follow-on\plain\cf1\f51\fs20\ql version of one of our products, our approved product would become subject to increased competition and our\plain\sa132\cf1\f51\fs20\ql revenues for that product would be adversely affected.\par\pard\plain\fi792\cf1\f51\fs20\ql We also may rely on trade secrets and other unpatented confidential information to protect our\plain\cf1\f51\fs20\ql technology, especially where we do not believe patent protection is appropriate or obtainable. However, trade\plain\cf1\f51\fs20\ql secrets are difficult to protect. We seek to protect our trade secrets and other confidential information by entering\plain\cf1\f51\fs20\ql into confidentiality agreements with employees, collaborators, vendors (including CROs and our CSO), consultants\plain\cf1\f51\fs20\ql and, at times, potential investors. Nevertheless, employees, collaborators, vendors, consultants or potential\plain\cf1\f51\fs20\ql investors may still disclose or misuse our trade secrets and other confidential information, and we may not be able\plain\cf1\f51\fs20\ql to meaningfully protect our trade secrets. In addition, others may independently develop substantially equivalent\plain\cf1\f51\fs20\ql information or techniques or otherwise gain access to our trade secrets. Disclosure or misuse of our confidential\plain\sa132\cf1\f51\fs20\ql information would harm our competitive position and could cause our revenues and operating results to decline.\par\pard\plain\fi792\cf1\f51\fs20\ql If we believe that others have infringed or misappropriated our proprietary rights, we may need to\plain\cf1\f51\fs20\ql institute legal action to protect our intellectual property rights. Such legal action may be expensive, and we may\plain\sa132\cf1\f51\fs20\ql not be able to afford the costs of enforcing or defending our intellectual property rights against others.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We may receive additional notices of ANDA filings submitted by generic drug companies asserting that generic\plain\cf1\f51\fs20\b\i\ql forms of our approved therapies would not infringe on our issued patents. As a result of these potential filings,\plain\sa132\cf1\f51\fs20\b\i\ql we may commence additional litigation to defend our patent rights, which would result in additional litigation\par\pard\plain\cf1\f51\fs20\qc 60\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql costs and, depending on the outcome of the litigation, might result in competition from lower cost generic or\plain\sa132\cf1\f51\fs20\b\i\ql follow-on products earlier than anticipated.\par\pard\plain\fi792\cf1\f51\fs20\ql Qsymia is approved under the provisions of the Federal Food, Drug and Cosmetic Act\plain\cf1\f51\fs20\ql (\u8220?FDCA\u8221?) which renders it susceptible to potential competition from generic manufacturers via the\plain\cf1\f51\fs20\ql ANDA approval process. The FDCA includes provisions allowing generic manufacturers to challenge the\plain\cf1\f51\fs20\ql innovator\u8217?s patent protection by submitting \u8220?Paragraph\~IV\u8221? certifications to FDA in which the\plain\cf1\f51\fs20\ql generic manufacturer claims that the innovator\u8217?s patent is invalid, unenforceable and/or will not be\plain\cf1\f51\fs20\ql infringed by the manufacture, use, or sale of the generic product. A patent owner who receives a Paragraph\~IV\plain\sa132\cf1\f51\fs20\ql certification may choose to sue the generic applicant for patent infringement.\par\pard\plain\fi792\cf1\f51\fs20\ql We received certain Paragraph IV certification notices and have entered into settlement agreements with\plain\cf1\f51\fs20\ql those who have submitted those notices. The settlement agreement with Actavis Laboratories FL, Inc., Actavis,\plain\cf1\f51\fs20\ql Inc., and Actavis PLC, collectively referred to as \u8220?Actavis,\u8221? will permit Actavis to begin selling a\plain\cf1\f51\fs20\ql generic version of Qsymia on December 1, 2024, or earlier under certain circumstances. The settlement with Dr.\plain\cf1\f51\fs20\ql Reddy\u8217?s Laboratories, S.A. and Dr. Reddy\u8217?s Laboratories, Inc., collectively referred to as\plain\cf1\f51\fs20\ql \u8220?DRL,\u8221? will permit DRL to begin selling a generic version of Qsymia on June 1, 2025, or earlier\plain\cf1\f51\fs20\ql under certain circumstances. It is possible that one or more additional companies may file an ANDA and could\plain\cf1\f51\fs20\ql receive FDA approval to market a generic version of Qsymia before the entry dates specified in our settlement\plain\cf1\f51\fs20\ql agreements with Actavis and DRL, including if it is determined that the generic product does not infringe our\plain\cf1\f51\fs20\ql patents, or that our patents are invalid or unenforceable. Although we intend to vigorously enforce our intellectual\plain\cf1\f51\fs20\ql property rights relating to Qsymia, in the event there is a future ANDA filer, there can be no assurance that we\plain\cf1\f51\fs20\ql will prevail in a future defense of our patent rights. If a generic version of Qsymia or any of our other approved\plain\cf1\f51\fs20\ql therapies is introduced, these therapies would become subject to increased competition and our revenue would be\plain\sa132\cf1\f51\fs20\ql adversely affected.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We may be sued for infringing the intellectual property rights of others, which could be costly and result in\plain\sa132\cf1\f51\fs20\b\i\ql delays or termination of our future research, development, manufacturing and sales activities.\par\pard\plain\fi792\cf1\f51\fs20\ql Our commercial success also depends, in part, upon our ability to develop future investigational drug\plain\cf1\f51\fs20\ql candidates, market and sell approved drugs and conduct our other research, development and commercialization\plain\cf1\f51\fs20\ql activities without infringing or misappropriating the patents and other proprietary rights of others. There are many\plain\cf1\f51\fs20\ql patents and patent applications owned by others that could be relevant to our business. For example, there are\plain\cf1\f51\fs20\ql numerous U.S. and foreign issued patents and pending patent applications owned by others that are related to the\plain\cf1\f51\fs20\ql therapeutic areas in which we have approved drugs or future investigational drug candidates as well as the\plain\cf1\f51\fs20\ql therapeutic targets to which these drugs and candidates are directed. There are also numerous issued patents and\plain\cf1\f51\fs20\ql patent applications covering chemical compounds or synthetic processes that may be necessary or useful to use in\plain\cf1\f51\fs20\ql our research, development, manufacturing or commercialization activities. Because patent applications can take\plain\cf1\f51\fs20\ql many years to issue, there may be currently pending applications, unknown to us, which may later result in issued\plain\cf1\f51\fs20\ql patents that our approved drugs, future investigational drug candidates or technologies may infringe. There also\plain\cf1\f51\fs20\ql may be existing patents, of which we are not aware, that our approved drugs, investigational drug candidates or\plain\cf1\f51\fs20\ql technologies may infringe. Further, it is not always clear to industry participants, including us, which patents\plain\cf1\f51\fs20\ql cover various types of products or methods. The coverage of patents is subject to interpretation by the courts, and\plain\cf1\f51\fs20\ql the interpretation is not always uniform. We cannot assure you that others holding any of these patents or patent\plain\cf1\f51\fs20\ql applications will not assert infringement claims against us for damages or seek to enjoin our activities. If we are\plain\cf1\f51\fs20\ql sued for patent infringement, we would need to demonstrate that our products or methods do not infringe the\plain\cf1\f51\fs20\ql patent claims of the relevant patent and/or that the patent claims are invalid or unenforceable, and we may not be\plain\sa132\cf1\f51\fs20\ql able to do this.\par\pard\plain\fi792\cf1\f51\fs20\ql There can be no assurance that approved drugs or future investigational drug candidates do not or will\plain\cf1\f51\fs20\ql not infringe on the patents or proprietary rights of others. In addition, third parties may already own or may\plain\sa132\cf1\f51\fs20\ql obtain patents in the future and claim that use of our technologies infringes these patents.\par\pard\plain\fi792\cf1\f51\fs20\ql If a person or entity files\~a legal action or administrative action against us, or our collaborators, claiming\plain\cf1\f51\fs20\ql that our drug discovery, development, manufacturing or commercialization activities infringe a patent owned by\plain\cf1\f51\fs20\ql the person or entity, we could incur substantial costs and diversion of the time and attention of management and\plain\cf1\f51\fs20\ql technical personnel in defending ourselves against any such claims. Furthermore, parties making claims against us\plain\cf1\f51\fs20\ql may be able to obtain injunctive or other equitable relief that could effectively block our ability to further\plain\sa132\cf1\f51\fs20\ql develop,\par\pard\plain\cf1\f51\fs20\qc 61\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql commercialize and sell any current or future approved drugs, and such claims could result in the award of\plain\cf1\f51\fs20\ql substantial damages against us. In the event of a successful claim of infringement against us, we may be required\plain\cf1\f51\fs20\ql to pay damages and obtain one or more licenses from third parties. We may not be able to obtain these licenses at\plain\cf1\f51\fs20\ql a reasonable cost, if at all. In that case, we could encounter delays in product introductions while we attempt to\plain\cf1\f51\fs20\ql develop alternative investigational drug candidates or be required to cease commercializing any affected current or\plain\sa132\cf1\f51\fs20\ql future approved drugs and our operating results would be harmed.\par\pard\plain\fi792\cf1\f51\fs20\ql Furthermore, because of the substantial amount of pre-trial document and witness discovery required in\plain\cf1\f51\fs20\ql connection with intellectual property litigation, there is a risk that some of our confidential information could be\plain\cf1\f51\fs20\ql compromised by disclosure during this type of litigation. In addition, during the course of this kind of litigation,\plain\cf1\f51\fs20\ql there could be public announcements of the results of hearings, motions or other interim proceedings or\plain\cf1\f51\fs20\ql developments. If securities analysts or investors perceive these results to be negative, it could have a substantial\plain\sa132\cf1\f51\fs20\ql adverse effect on the trading price of our common stock.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We may face additional competition outside of the U.S. as a result of a lack of patent coverage in some\plain\sa132\cf1\f51\fs20\b\i\ql territories and differences in patent prosecution and enforcement laws in foreign countries.\par\pard\plain\fi792\cf1\f51\fs20\ql Filing, prosecuting, defending and enforcing patents on all of our drug discovery technologies and all of\plain\cf1\f51\fs20\ql our approved drugs and potential investigational drug candidates throughout the world would be prohibitively\plain\cf1\f51\fs20\ql expensive. While we have filed patent applications in many countries outside the U.S., and have obtained some\plain\cf1\f51\fs20\ql patent coverage for approved drugs in certain foreign countries, we do not currently have widespread patent\plain\cf1\f51\fs20\ql protection for these drugs outside the U.S. and have no protection in many foreign jurisdictions. Competitors may\plain\cf1\f51\fs20\ql use our technologies to develop their own drugs in jurisdictions where we have not obtained patent protection.\plain\cf1\f51\fs20\ql These drugs may compete with our approved drugs or future investigational drug candidates and may not be\plain\sa132\cf1\f51\fs20\ql covered by any of our patent claims or other intellectual property rights.\par\pard\plain\fi792\cf1\f51\fs20\ql Even if international patent applications ultimately issue or receive approval, it is likely that the scope of\plain\cf1\f51\fs20\ql protection provided by such patents will be different from, and possibly less than, the scope provided by our\plain\cf1\f51\fs20\ql corresponding U.S. patents. The success of our international market opportunity is dependent upon the\plain\cf1\f51\fs20\ql enforcement of patent rights in various other countries. A number of countries in which we have filed or intend to\plain\cf1\f51\fs20\ql file patent applications have a history of weak enforcement and/or compulsory licensing of intellectual property\plain\cf1\f51\fs20\ql rights. Moreover, the legal systems of certain countries, particularly certain developing countries, do not favor the\plain\cf1\f51\fs20\ql aggressive enforcement of patents and other intellectual property protection, particularly those relating to\plain\cf1\f51\fs20\ql biotechnology and/or pharmaceuticals, which make it difficult for us to stop the infringement of our patents. Even\plain\cf1\f51\fs20\ql if we have patents issued in these jurisdictions, there can be no assurance that our patent rights will be sufficient\plain\sa132\cf1\f51\fs20\ql to prevent generic competition or unauthorized use.\par\pard\plain\fi792\cf1\f51\fs20\ql Attempting to enforce our patent rights in foreign jurisdictions could result in substantial cost and divert\plain\sa132\cf1\f51\fs20\ql our efforts and attention from other aspects of our business.\par\pard\plain\sa132\cf1\f51\fs20\ql \~\par\pard\plain\sb132\sa132\cf1\f51\fs24\b\ql Risks Relating to our Financial Position and Need for Financing\par\pard\plain\sb396\cf1\f51\fs20\b\i\ql We may require additional capital for our future operating plans and debt servicing requirements, and we may\plain\cf1\f51\fs20\b\i\ql not be able to secure the requisite additional funding on acceptable terms, or at all, which would force us to\plain\sa132\cf1\f51\fs20\b\i\ql delay, reduce or eliminate commercialization or development efforts.\par\pard\plain\fi792\cf1\f51\fs20\ql We expect that our existing capital resources combined with future anticipated cash flows will be\plain\cf1\f51\fs20\ql sufficient to support our operating activities at least through the next twelve months. However, we anticipate that\plain\cf1\f51\fs20\ql we will be required to obtain additional financing to fund our commercialization efforts, additional clinical studies\plain\cf1\f51\fs20\ql for approved products, the development of our research and development pipeline and the servicing requirements\plain\sa132\cf1\f51\fs20\ql of our debt. Our future capital requirements will depend upon numerous factors, including:
\par\pard\plain
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\par\pard\plain
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\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}
\par\pard\plain
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\par\pard\plain
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\par\pard\plain
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql the impact of healthcare reform, if any, imposed by the federal government; and\cell{
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382\row}}}\pard\plain\fi792\cf1\f51\fs20\ql Future capital requirements will also depend on the extent to which we acquire or invest in additional\plain\cf1\f51\fs20\ql businesses, products and technologies. On January 6, 2017, we entered into a Patent Assignment Agreement with\plain\cf1\f51\fs20\ql Selten whereby we received exclusive, worldwide rights for the development and commercialization of BMPR2\plain\cf1\f51\fs20\ql activators for the treatment of PAH and related vascular diseases. We paid Selten an upfront payment of $1.0\plain\cf1\f51\fs20\ql million, and we will pay additional milestone payments based on global development status and future sales\plain\cf1\f51\fs20\ql milestones, as well as tiered royalty payments on future sales of these compounds. The total potential milestone\plain\sa132\cf1\f51\fs20\ql payments are $39.6 million.\par\pard\plain\fi792\cf1\f51\fs20\ql To obtain additional capital when needed, we will evaluate alternative financing sources, including, but\plain\cf1\f51\fs20\ql not limited to, the issuance of equity or debt securities, corporate alliances, joint ventures and licensing\plain\cf1\f51\fs20\ql agreements. However, there can be no assurance that funding will be available on favorable terms, if at all. We\plain\cf1\f51\fs20\ql are continually evaluating our existing portfolio and we may choose to divest, sell or spin-off one or more of our\plain\cf1\f51\fs20\ql drugs and/or investigational drug candidates at any time. We cannot assure you that our drugs will generate\plain\cf1\f51\fs20\ql revenues sufficient to enable us to earn a profit. If we are unable to obtain additional capital, management may be\plain\cf1\f51\fs20\ql required to explore alternatives to reduce cash used by operating activities, including the termination of research\plain\cf1\f51\fs20\ql and development efforts that may appear to be promising to us, the sale of certain assets and the reduction in\plain\cf1\f51\fs20\ql overall operating activities. If adequate funds are not available, we may be required to delay, reduce the scope of\plain\sa132\cf1\f51\fs20\ql or eliminate one or more of our development programs or our commercialization efforts.\par\pard\plain\cf1\f51\fs20\qc 63\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Raising additional funds by issuing securities will cause dilution to existing stockholders and raising funds\plain\cf1\f51\fs20\b\i\ql through lending and licensing arrangements may restrict our operations or require us to relinquish proprietary\plain\sa132\cf1\f51\fs20\b\i\ql rights.\par\pard\plain\fi792\cf1\f51\fs20\ql To the extent that we raise additional capital by issuing equity securities, our existing\plain\cf1\f51\fs20\ql stockholders\u8217? ownership will be diluted. We have financed our operations, and we expect to continue to\plain\cf1\f51\fs20\ql finance our operations, primarily by issuing equity and debt securities. Moreover, any issuances by us of equity\plain\cf1\f51\fs20\ql securities may be at or below the prevailing market price of our common stock and in any event may have a\plain\cf1\f51\fs20\ql dilutive impact on your ownership interest, which could cause the market price of our common stock to decline.\plain\sa132\cf1\f51\fs20\ql To raise additional capital, we may choose to issue additional securities at any time and at any price.\par\pard\plain\fi792\cf1\f51\fs20\ql As of March 31, 2019, we have $181.4 million in 4.5% Convertible Senior Notes due May\~1, 2020,\plain\cf1\f51\fs20\ql which we refer to as the Convertible Notes. The Convertible Notes are convertible into approximately 1,683,000\plain\cf1\f51\fs20\ql shares of our common stock under certain circumstances prior to maturity at a conversion rate of 6.73038 shares\plain\cf1\f51\fs20\ql per $1,000 principal amount of Convertible Notes, which represents a conversion price of approximately $148.58\plain\cf1\f51\fs20\ql per share, subject to adjustment under certain conditions. On October 8, 2015, IEH Biopharma LLC, a subsidiary\plain\cf1\f51\fs20\ql of Icahn Enterprises L.P., announced that it had received tenders for $170,165,000 of the aggregate principal\plain\cf1\f51\fs20\ql amount of our Convertible Notes in its previously announced cash tender offer for any and all of the outstanding\plain\cf1\f51\fs20\ql Convertible Notes. The Convertible Notes are convertible at the option of the holders under certain conditions at\plain\cf1\f51\fs20\ql any time prior to the close of business on the business day immediately preceding November\~1, 2019. Investors in\plain\cf1\f51\fs20\ql our common stock will be diluted to the extent the Convertible Notes are converted into shares of our common\plain\sa132\cf1\f51\fs20\ql stock, rather than being settled in cash.\par\pard\plain\fi792\cf1\f51\fs20\ql In April 2018, we entered into an agreement for a new $120.0 million senior secured note (the\plain\cf1\f51\fs20\ql \u8220?Athyrium Notes\u8221?) with Athyrium Capital Management, LP (\u8220?Athyrium\u8221?). $110.0\plain\cf1\f51\fs20\ql million of the Athyrium Notes were drawn down in June 2018, with the remaining $10.0 million available for\plain\cf1\f51\fs20\ql drawing upon meeting certain conditions. Payments on the Athyrium Notes bear interest at 10.375% and are\plain\cf1\f51\fs20\ql interest-only for the first 36 months; thereafter the notes will be repaid in 36 equal monthly payments.\plain\cf1\f51\fs20\ql Concurrently, we repurchased Convertible Notes held by Athyrium, with a face value of $60.0 million, for $51.0\plain\cf1\f51\fs20\ql million. In October 2018, we settled a purchase of approximately $8.6 million outstanding principal amount of our\plain\cf1\f51\fs20\ql Convertible Notes for approximately $7.1 million plus accrued interest. We continue our evaluation of alternatives\plain\sa132\cf1\f51\fs20\ql for addressing our remaining $181.4 million of Convertible Notes.\par\pard\plain\fi792\cf1\f51\fs20\ql We may also raise additional capital through the incurrence of debt, and the holders of any debt we may\plain\cf1\f51\fs20\ql issue would have rights superior to our stockholders\u8217? rights in the event we are not successful and are\plain\sa132\cf1\f51\fs20\ql forced to seek the protection of bankruptcy laws.\par\pard\plain\fi792\cf1\f51\fs20\ql In addition, debt financing typically contains covenants that restrict operating activities. For example, on\plain\cf1\f51\fs20\ql March\~25, 2013, we entered into the Purchase and Sale Agreement (the \u8220?BioPharma Agreement\u8221?)\plain\cf1\f51\fs20\ql with BioPharma Secured Investments III Holdings Cayman LP (\u8220?BioPharma\u8221?) which provides for\plain\cf1\f51\fs20\ql the purchase of a debt-like instrument. Under the BioPharma Agreement, we may not (i)\~incur indebtedness\plain\cf1\f51\fs20\ql greater than a specified amount, (ii)\~pay a dividend or other cash distribution on our capital stock, unless we have\plain\cf1\f51\fs20\ql cash and cash equivalents in excess of a specified amount, (iii)\~amend or restate our certificate of incorporation or\plain\cf1\f51\fs20\ql bylaws unless such amendments or restatements do not affect BioPharma\u8217?s interests under the BioPharma\plain\cf1\f51\fs20\ql Agreement, (iv)\~encumber the collateral, or (v)\~abandon certain patent rights, in each case without the consent of\plain\cf1\f51\fs20\ql BioPharma. Any future debt financing we enter into may involve similar or more onerous covenants that restrict\plain\sa132\cf1\f51\fs20\ql our operations.\par\pard\plain\fi792\cf1\f51\fs20\ql If we raise additional capital through collaboration, licensing or other similar arrangements, it may be\plain\cf1\f51\fs20\ql necessary to relinquish potentially valuable rights to our drugs or future investigational drug candidates, potential\plain\cf1\f51\fs20\ql products or proprietary technologies, or grant licenses on terms that are not favorable to us. If adequate funds are\plain\cf1\f51\fs20\ql not available, our ability to achieve profitability or to respond to competitive pressures would be significantly\plain\cf1\f51\fs20\ql limited and we may be required to delay, significantly curtail or eliminate the commercialization of one or more\plain\sa132\cf1\f51\fs20\ql of our approved drugs or the development of one or more of our future investigational drug candidates.\par\pard\plain\cf1\f51\fs20\qc 64\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql The investment of our cash balance and our available-for-sale securities are subject to risks that may cause\plain\sa132\cf1\f51\fs20\b\i\ql losses and affect the liquidity of these investments.\par\pard\plain\fi792\cf1\f51\fs20\ql At March 31, 2019, we had $104.7 million in cash, cash equivalents and available-for-sale securities.\plain\cf1\f51\fs20\ql While at March 31, 2019, our excess cash balances were invested in money market, U.S. Treasury securities and\plain\cf1\f51\fs20\ql corporate debt securities, our investment policy as approved by our Board of Directors, also provides for\plain\cf1\f51\fs20\ql investments in debt securities of U.S. government agencies, corporate debt securities and asset-backed securities.\plain\cf1\f51\fs20\ql Our investment policy has the primary investment objectives of preservation of principal. However, there may be\plain\cf1\f51\fs20\ql times when certain of the securities in our portfolio will fall below the credit ratings required in the policy. These\plain\cf1\f51\fs20\ql factors could impact the liquidity or valuation of our available-for-sale securities, all of which were invested in\plain\cf1\f51\fs20\ql U.S. Treasury securities or corporate debt securities as of March 31, 2019. If those securities are downgraded or\plain\cf1\f51\fs20\ql impaired we would experience losses in the value of our portfolio which would have an adverse effect on our\plain\cf1\f51\fs20\ql results of operations, liquidity and financial condition. An investment in money market mutual funds is not\plain\cf1\f51\fs20\ql insured or guaranteed by the Federal Deposit Insurance Corporation or any other government agency. Although\plain\cf1\f51\fs20\ql money market mutual funds seek to preserve the value of the investment at $1 per share, it is possible to lose\plain\sa132\cf1\f51\fs20\ql money by investing in money market mutual funds.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Our involvement in securities-related class action and shareholder litigation could divert our resources and\plain\sa132\cf1\f51\fs20\b\i\ql management\u8217?s attention and harm our business.\par\pard\plain\fi792\cf1\f51\fs20\ql The stock markets have from time to time experienced significant price and volume fluctuations that have\plain\cf1\f51\fs20\ql affected the market prices for the common stock of pharmaceutical companies. These broad market fluctuations\plain\cf1\f51\fs20\ql may cause the market price of our common stock to decline. In the past, securities-related class action litigation\plain\cf1\f51\fs20\ql has often been brought against a company following a decline in the market price of its securities. This risk is\plain\cf1\f51\fs20\ql especially relevant for us because biotechnology and biopharmaceutical companies often experience significant\plain\cf1\f51\fs20\ql stock price volatility in connection with their investigational drug candidate development programs, the review of\plain\cf1\f51\fs20\ql marketing applications by regulatory authorities and the commercial launch of newly approved drugs. We were a\plain\cf1\f51\fs20\ql defendant in federal and consolidated state shareholder derivative lawsuits. These securities-related class action\plain\cf1\f51\fs20\ql lawsuits generally alleged that we and our officers misled the investing public regarding the safety and efficacy of\plain\cf1\f51\fs20\ql Qsymia and the prospects for FDA\u8217?s approval of the Qsymia NDA as a treatment for obesity.\plain\cf1\f51\fs20\ql Securities-related class action litigation often is expensive and diverts management\u8217?s attention and our\plain\sa132\cf1\f51\fs20\ql financial resources, which could adversely affect our business.\par\pard\plain\fi792\cf1\f51\fs20\ql For example, on March 27, 2014, Mary Jane and Thomas Jasin, who purport to be purchasers of VIVUS\plain\cf1\f51\fs20\ql common stock, filed an Amended Complaint in Santa Clara County Superior Court alleging securities fraud\plain\cf1\f51\fs20\ql against us and three of our former officers and directors. In that complaint, captioned Jasin v. VIVUS, Inc., Case\plain\cf1\f51\fs20\ql No. 114 cv 261427, plaintiffs asserted claims under California\u8217?s securities and consumer protection\plain\cf1\f51\fs20\ql securities statutes. Plaintiffs alleged generally that defendants misrepresented the prospects for our success,\plain\cf1\f51\fs20\ql including with respect to the launch of Qsymia, while purportedly selling VIVUS stock for personal profit.\plain\cf1\f51\fs20\ql Plaintiffs alleged losses of \u8220?at least\u8221? $2.8 million, and sought damages and other relief. On July 18,\plain\cf1\f51\fs20\ql 2014, the same plaintiffs filed a complaint in the United States District Court for the Northern District of\plain\cf1\f51\fs20\ql California, captioned Jasin v. VIVUS, Inc., Case No. 5:14 cv 03263. The Jasins\u8217? federal complaint alleges\plain\cf1\f51\fs20\ql violations of Sections 10(b) and 20(a) of the Securities Exchange Act of 1934, as amended, based on facts\plain\cf1\f51\fs20\ql substantially similar to those alleged in their state court action. On September 15, 2014, pursuant to an agreement\plain\cf1\f51\fs20\ql between the parties, plaintiffs voluntarily dismissed their state court action with prejudice. Defendants moved to\plain\cf1\f51\fs20\ql dismiss the federal action and moved to dismiss again after plaintiffs amended their complaint to include\plain\cf1\f51\fs20\ql additional factual allegations and to add seven new claims under California law. The court granted the latter\plain\cf1\f51\fs20\ql motion on June 18, 2015, dismissing the seven California claims with prejudice and dismissing the two federal\plain\cf1\f51\fs20\ql claims with leave to amend. Plaintiffs filed a Second Amended Complaint on August 17, 2015. Defendants moved\plain\cf1\f51\fs20\ql to dismiss that complaint as well. On April 19, 2016, the court granted defendants\u8217? motion to dismiss with\plain\cf1\f51\fs20\ql prejudice and entered judgment in favor of defendants. Plaintiffs filed a notice of appeal to the Ninth Circuit\plain\cf1\f51\fs20\ql Court of Appeals on May 18, 2016. The Ninth Circuit issued a decision on January 16, 2018, affirming the\plain\cf1\f51\fs20\ql district court\u8217?s dismissal of the action. The deadline for Plaintiffs to seek rehearing in the Ninth Circuit and\plain\sa132\cf1\f51\fs20\ql to file a petition for certiorari in the Supreme Court has now expired and the matter is concluded.\par\pard\plain\cf1\f51\fs20\qc 65\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We have an accumulated deficit of $888.5 million as of March 31, 2019, and we may continue to incur\plain\sa132\cf1\f51\fs20\b\i\ql substantial operating losses for the future.\par\pard\plain\fi792\cf1\f51\fs20\ql We have generated a cumulative net loss of $888.5 million for the period from our inception through\plain\cf1\f51\fs20\ql March 31, 2019, and we anticipate losses in future years due to continued investment in our research and\plain\cf1\f51\fs20\ql development programs. There can be no assurance that we will be able to achieve or maintain profitability or that\plain\sa132\cf1\f51\fs20\ql we will be successful in the future.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Our ability to utilize our net operating loss carryforwards and other tax attributes to offset future taxable\plain\sa132\cf1\f51\fs20\b\i\ql income may be limited.\par\pard\plain\fi792\cf1\f51\fs20\ql As of December 31, 2018, we had approximately $630.7\~million and $273.6\~million of net operating loss\plain\cf1\f51\fs20\ql (\u8220?NOL\u8221?) carryforwards with which to offset our future taxable income for federal and state income\plain\cf1\f51\fs20\ql tax reporting purposes, respectively. Utilization of our net operating loss and tax credit carryforwards, or tax\plain\cf1\f51\fs20\ql attributes, may be subject to substantial annual limitations provided by the Internal Revenue Code and similar\plain\cf1\f51\fs20\ql state provisions to the extent certain ownership changes are deemed to occur. Such an annual limitation could\plain\cf1\f51\fs20\ql result in the expiration of the tax attributes before utilization. The tax attributes reflected above have not been\plain\cf1\f51\fs20\ql reduced by any limitations. To the extent it is determined upon completion of the analysis that such limitations do\plain\cf1\f51\fs20\ql apply, we will adjust the tax attributes accordingly. We face the risk that our ability to use our tax attributes will\plain\cf1\f51\fs20\ql be substantially restricted if we undergo an \u8220?ownership change\u8221? as defined in Section\~382 of the\plain\cf1\f51\fs20\ql U.S. Internal Revenue Code (\u8220?Section\~382\u8221?). An ownership change under Section\~382 would occur if\plain\cf1\f51\fs20\ql \u8220?5-percent shareholders,\u8221? within the meaning of Section\~382, collectively increased their ownership\plain\cf1\f51\fs20\ql in the Company by more than 50\~percentage points over a rolling three-year period. We have not completed a\plain\cf1\f51\fs20\ql recent study to assess whether any change of control has occurred or whether there have been multiple changes of\plain\cf1\f51\fs20\ql control since our formation, due to the significant complexity and cost associated with the study. We have\plain\cf1\f51\fs20\ql completed studies through December 31, 2016 and concluded no adjustments were required. If we have\plain\cf1\f51\fs20\ql experienced a change of control at any time since our formation, our NOL carryforwards and tax credits may not\plain\cf1\f51\fs20\ql be available, or their utilization could be subject to an annual limitation under Section\~382. A full valuation\plain\cf1\f51\fs20\ql allowance has been provided against our NOL carryforwards, and if an adjustment is required, this adjustment\plain\cf1\f51\fs20\ql would be offset by an adjustment to the valuation allowance. Accordingly, there would be no impact on the\plain\sa132\cf1\f51\fs20\ql consolidated balance sheet or statement of operations.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql We may have exposure to additional tax liabilities that could negatively impact our income tax provision, net\plain\sa132\cf1\f51\fs20\b\i\ql income, and cash flow.\par\pard\plain\fi792\cf1\f51\fs20\ql We are subject to income taxes and other taxes in both the U.S. and the foreign jurisdictions in which we\plain\cf1\f51\fs20\ql currently operate or have historically operated. The determination of our worldwide provision for income taxes\plain\cf1\f51\fs20\ql and current and deferred tax assets and liabilities requires judgment and estimation. In the ordinary course of our\plain\cf1\f51\fs20\ql business, there are many transactions and calculations where the ultimate tax determination is uncertain. We are\plain\cf1\f51\fs20\ql subject to regular review and audit by U.S. tax authorities as well as subject to the prospective and retrospective\plain\cf1\f51\fs20\ql effects of changing tax regulations and legislation. Although we believe our tax estimates are reasonable, the\plain\cf1\f51\fs20\ql ultimate tax outcome may materially differ from the tax amounts recorded in our consolidated financial statements\plain\cf1\f51\fs20\ql and may materially affect our income tax provision, net income, or cash flows in the period or periods for which\plain\sa132\cf1\f51\fs20\ql such determination and settlement is made.\par\pard\plain\sb264\sa132\cf1\f51\fs24\b\ql Risks Relating to an Investment in our Common Stock\par\pard\plain\sb528\sa132\cf1\f51\fs20\b\i\ql Our stock price has been and may continue to be volatile.\par\pard\plain\fi792\cf1\f51\fs20\ql The market price of our common stock has been volatile and is likely to continue to be so. The market\plain\sa132\cf1\f51\fs20\ql price of our common stock may fluctuate due to factors including, but not limited to:
\par\pard\plain
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh630\row}}}\pard\plain\cf1\f51\fs20\qc 66\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql our ability to find the right partner for expanded Qsymia commercial promotion to a broader primary\plain\intbl\sa132\cf1\f51\fs20\ql care physician audience;\cell{
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql our ability to obtain marketing authorization for our products in foreign jurisdictions, including\plain\intbl\sa132\cf1\f51\fs20\ql authorization from the EC for Qsymia in the EU;\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh652\row}}}
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql the costs, timing and outcome of post-approval clinical studies which FDA has required us to\plain\intbl\sa132\cf1\f51\fs20\ql perform as part of the approval for Qsymia and STENDRA;\cell{
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{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh405
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql public concern as to the safety or efficacy of our drugs or future investigational drug candidates\plain\intbl\sa132\cf1\f51\fs20\ql developed by us.\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh630\row}}}\pard\plain\fi792\cf1\f51\fs20\ql These factors and fluctuations, as well as political and other market conditions, may adversely affect the\plain\cf1\f51\fs20\ql market price of our common stock. Additionally, volatility or a lack of positive performance in our stock price\plain\cf1\f51\fs20\ql may adversely affect our ability to retain or recruit key employees, all of whom have been or will be granted\plain\sa132\cf1\f51\fs20\ql equity awards as an important part of their compensation packages.\par\pard\plain\cf1\f51\fs20\qc 67\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Our operating results are unpredictable and may fluctuate. If our operating results are below the expectations\plain\sa132\cf1\f51\fs20\b\i\ql of securities analysts or investors, the trading price of our stock could decline.\par\pard\plain\fi792\cf1\f51\fs20\ql Our operating results will likely fluctuate from fiscal quarter to fiscal quarter, and from year to year, and\plain\cf1\f51\fs20\ql are difficult to predict. Product sales of Qsymia may never increase or become profitable. We may be\plain\cf1\f51\fs20\ql unsuccessful in properly integrating and profitably marketing PANCREAZE. In addition, although we have\plain\cf1\f51\fs20\ql entered into license and commercialization agreements with Menarini to commercialize and promote SPEDRA for\plain\cf1\f51\fs20\ql the treatment of ED in over 40\~countries, including the EU, plus Australia and New Zealand and with Metuchen\plain\cf1\f51\fs20\ql to commercialize STENDRA in the U.S., Canada, South America and India, we and they may not be successful in\plain\cf1\f51\fs20\ql commercializing avanafil in these territories. Our operating expenses are largely independent of sales in any\plain\cf1\f51\fs20\ql particular period. We believe that our quarterly and annual results of operations may be negatively affected by a\plain\cf1\f51\fs20\ql variety of factors. These factors include, but are not limited to, the level of patient demand for Qsymia and\plain\cf1\f51\fs20\ql STENDRA, the ability of our distribution partners to process and ship product on a timely basis, the success of\plain\cf1\f51\fs20\ql our third-party\u8217?s manufacturing efforts to meet customer demand, fluctuations in foreign exchange rates,\plain\cf1\f51\fs20\ql investments in sales and marketing efforts to support the sales of Qsymia and STENDRA, investments in the\plain\sa132\cf1\f51\fs20\ql research and development efforts, and expenditures we may incur to acquire additional products.\par\pard\plain\sb528\sa132\cf1\f51\fs20\b\i\ql Future sales of our common stock may depress our stock price.\par\pard\plain\fi792\cf1\f51\fs20\ql Sales of our stock by our executive officers or directors, or the perception that such sales may occur,\plain\cf1\f51\fs20\ql could adversely affect the market price of our stock. We have also registered all common stock that we may issue\plain\cf1\f51\fs20\ql under our employee benefits plans. As a result, these shares can be freely sold in the public market upon issuance,\plain\cf1\f51\fs20\ql subject to restrictions under the securities laws. Any of our executive officers or directors may adopt trading plans\plain\cf1\f51\fs20\ql under SEC Rule 10b5-1 to dispose of a portion of their stock. If any of these events cause a large number of our\plain\cf1\f51\fs20\ql shares to be sold in the public market, the sales could reduce the trading price of our common stock and impede\plain\sa132\cf1\f51\fs20\ql our ability to raise future capital.\par\pard\plain\sb528\cf1\f51\fs20\b\i\ql Our charter documents and Delaware law could make an acquisition of our company difficult, even if an\plain\sa132\cf1\f51\fs20\b\i\ql acquisition may benefit our stockholders.\par\pard\plain\fi792\cf1\f51\fs20\ql On November 8, 2016, our Board of Directors adopted an amendment and restatement of our Preferred\plain\cf1\f51\fs20\ql Stock Rights Plan, which was originally adopted on March 26, 2007. As amended and restated, the Preferred\plain\cf1\f51\fs20\ql Stock Rights Plan is designed to protect stockholder value by mitigating the likelihood of an \u8220?ownership\plain\cf1\f51\fs20\ql change\u8221? that would result in significant limitations to our ability to use our NOLs or other tax attributes to\plain\cf1\f51\fs20\ql offset future income. As amended and restated, the Preferred Stock Rights Plan will continue in effect until\plain\cf1\f51\fs20\ql November 9, 2019, unless earlier terminated or the rights are earlier exchanged or redeemed by our Board of\plain\cf1\f51\fs20\ql Directors. We submitted the plan to a vote at the 2017 annual meeting of stockholders, and stockholders ratified\plain\cf1\f51\fs20\ql the plan at the 2017 annual meeting of stockholders. The Preferred Stock Rights Plan has the effect of causing\plain\cf1\f51\fs20\ql substantial dilution to a person or group that acquires more than 4.9% of our shares without the approval of our\plain\cf1\f51\fs20\ql Board of Directors. The existence of the Preferred Stock Rights Plan could limit the price that certain investors\plain\cf1\f51\fs20\ql might be willing to pay in the future for shares of our common stock and could discourage, delay or prevent a\plain\sa132\cf1\f51\fs20\ql merger or acquisition that a stockholder may consider favorable.\par\pard\plain\fi792\cf1\f51\fs20\ql Some provisions of our Amended and Restated Certificate of Incorporation and Amended and Restated\plain\sa132\cf1\f51\fs20\ql Bylaws could delay or prevent a change in control of our Company. Some of these provisions:
\par\pard\plain
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\par\pard\plain
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f53\fs20\ql ·\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\sa132\cf1\f51\fs20\ql eliminate cumulative voting in the election of directors.\cell{
{\trowd\clvertalc\cellx720\cellx1060\clvertalc\cellx1080\cellx9529\trrh382\row}}}\pard\plain\fi792\cf1\f51\fs20\ql In addition, we are governed by the provisions of Section\~203 of Delaware General Corporation Law.\plain\cf1\f51\fs20\ql These provisions may prohibit large stockholders, in particular those owning 15% or more of our outstanding\plain\sa132\cf1\f51\fs20\ql voting\par\pard\plain\cf1\f51\fs20\qc 68\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}\par\pard\plain\cf1\f51\fs20\ql stock, from merging or combining with us. These and other provisions in our charter documents could reduce the\plain\cf1\f51\fs20\ql price that investors might be willing to pay for shares of our common stock in the future and result in the market\plain\sa132\cf1\f51\fs20\ql price being lower than it would be without these provisions.\par\pard\plain\fi792\cf1\f51\fs20\ql \~{\*\bkmkstart item_1_3_7}{\*\bkmkend item_1_3_7}\par\pard\plain\li220\sb396\fi-220\cf1\f51\fs22\b\ql ITEM 2. UNREGISTERED SALES OF EQUITY SECURITIES AND USE OF PROCEEDS{\*\bkmkstart item2_unregisteredsalesofequitys}{\*\bkmkend item2_unregisteredsalesofequitys}\par\pard\plain\fi792\cf1\f51\fs20\ql None.\par\pard\plain\fi792\cf1\f51\fs20\ql \~{\*\bkmkstart item_1_3_8}{\*\bkmkend item_1_3_8}\par\pard\plain\li1012\sb396\fi-1012\cf1\f51\fs22\b\ql ITEM 3. DEFAULTS UPON SENIOR SECURITIES{\*\bkmkstart item3_defaultsuponseniorsecuriti}{\*\bkmkend item3_defaultsuponseniorsecuriti}\par\pard\plain\fi792\cf1\f51\fs20\ql None.{\*\bkmkstart item_1_3_9}{\*\bkmkend item_1_3_9}\par\pard\plain\sb396\cf1\f51\fs22\b\ql ITEM 4. MINE SAFETY DISCLOSURES{\*\bkmkstart item4_minesafetydisclosures_1709}{\*\bkmkend item4_minesafetydisclosures_1709}\par\pard\plain\fi792\cf1\f51\fs20\ql Not applicable.{\*\bkmkstart item_1_3_10}{\*\bkmkend item_1_3_10}\par\pard\plain\li1012\sb396\fi-1012\cf1\f51\fs22\b\ql ITEM 5. OTHER INFORMATION{\*\bkmkstart item5_otherinformation_170959_12}{\*\bkmkend item5_otherinformation_170959_12}\par\pard\plain\fi792\cf1\f51\fs20\ql None.{\*\bkmkstart item_1_3_11}{\*\bkmkend item_1_3_11}\par\pard\plain\sb396\cf1\f51\fs22\b\ql ITEM 6. EXHIBITS{\*\bkmkstart item6_exhibits_171002_12866592}{\*\bkmkend item6_exhibits_171002_12866592}\par\pard\plain\sa44\cf1\f51\fs20\qc VIVUS, INC.\par\pard\plain\sa132\cf1\f51\fs20\qc INDEX TO EXHIBITS
\par\pard\plain
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\pard\plain\intbl\cf1\f51\fs16\b\ql EXHIBIT
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\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}
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\pard\plain\intbl\cf1\f51\fs20\qr 4.10\plain\intbl\cf1\f51\fs10\qr (13)\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\ul{\field{\*\fldinst HYPERLINK "http://www.sec.gov/Archives/edgar/data/881524/000110465918062507/a18-36851_1ex4d3.htm" }{\*\fldrslt\cf3\f51\fs20\ql First Supplemental Indenture, dated as of October 11, 2018, among the Registrant, as issuer and}}\plain\intbl\ul{\field{\*\fldinst HYPERLINK "http://www.sec.gov/Archives/edgar/data/881524/000110465918062507/a18-36851_1ex4d3.htm" }{\*\fldrslt\cf3\f51\fs20\ql U.S. Bank National Association, as trustee and collateral agent.}}\cell{
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\pard\plain\intbl\cf1\f51\fs20\qr 101\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql The following materials from the Registrant\u8217?s Quarterly Report on Form\~10-Q for the\plain\intbl\cf1\f51\fs20\ql quarter ended March 31, 2019, formatted in eXtensible Business Reporting Language (XBRL),\plain\intbl\cf1\f51\fs20\ql include: (i)\~the Condensed Consolidated Balance Sheets, (ii)\~the Condensed Consolidated\plain\intbl\cf1\f51\fs20\ql Statements of Operations, (iii)\~the Condensed Consolidated Statements of Comprehensive Loss,\plain\intbl\cf1\f51\fs20\ql (iv)\~the Condensed Consolidated Statements of Cash Flows, and (v)\~related notes.\cell{
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\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}
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\page\pard\plain\sa660\ul{\field{\*\fldinst HYPERLINK \\l "toc_12866592" }{\*\fldrslt\cf3\f51\fs20\ql Table of Contents}}{\*\bkmkstart part_1_2_3}{\*\bkmkend part_1_2_3}\par\pard\plain\cf1\f51\fs22\b\qc SIGNATURES{\*\bkmkstart signatures_171045_12866592}{\*\bkmkend signatures_171045_12866592}\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\fi792\cf1\f51\fs20\ql Pursuant to the requirements of the Securities Exchange Act of 1934, the registrant has duly caused this\plain\cf1\f51\fs20\ql report to be signed on its behalf by the undersigned thereunto duly authorized.\par\pard\plain\cf1\f51\fs20\qc \~
\par\pard\plain
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\pard\plain\intbl\cf1\f51\fs20\ql Date: April 30, 2019\cell\pard\plain\intbl\cf1\f51\fs20\ql VIVUS,\~Inc.\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc /s/ John P. Amos\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc John P. Amos\cell{
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\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\qc Chief Executive Officer\cell{
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\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\qc /s/ Mark K. Oki\cell{
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\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\qc Mark K. Oki\cell{
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\pard\plain\intbl\cf1\f51\fs20\qc \~\cell\pard\plain\intbl\cf1\f51\fs20\qc Senior Vice President, Chief Financial Officer and Chief\plain\intbl\cf1\f51\fs20\qc Accounting Officer\cell{
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\page{\*\bkmkstart doc_1_2}{\*\bkmkend doc_1_2}\par\pard\plain\cf1\f51\fs24\b\qr Exhibit 10.1\par\pard\plain\cf1\f51\fs24\b\qr EXECUTION VERSION\par\pard\plain\sa264\cf1\f51\fs24\b\qc AMENDMENT NO. 4 TO COLLATERAL AGREEMENT\par\pard\plain\cf1\f51\fs24\qj This AMENDMENT NO. 4 TO COLLATERAL AGREEMENT, dated as of March 20, 2019\plain\cf1\f51\fs24\qj (this \u8220?\plain\cf1\f51\fs24\b\qj Amendment\plain\cf1\f51\fs24\qj \u8221?), is entered into by and between VIVUS, Inc., a Delaware\plain\cf1\f51\fs24\qj corporation (\u8220?\plain\cf1\f51\fs24\b\qj Issuer\plain\cf1\f51\fs24\qj \u8221?), U.S. Bank National Association, as Trustee\plain\cf1\f51\fs24\qj (\u8220?\plain\cf1\f51\fs24\b\qj Trustee\plain\cf1\f51\fs24\qj \u8221?) and U.S. Bank National Association, as Collateral Agent\plain\cf1\f51\fs24\qj (\u8220?\plain\cf1\f51\fs24\b\qj Collateral Agent\plain\sa264\cf1\f51\fs24\qj \u8221?).\par\pard\plain\cf1\f51\fs24\qj WHEREAS, the Issuer, Trustee and Collateral Agent are parties to that certain Collateral\plain\cf1\f51\fs24\qj Agreement, dated as of June 8, 2018 (as amended by that Amendment No. 1 to Collateral\plain\cf1\f51\fs24\qj Agreement dated as of July 6, 2018, that Amendment No. 2 to Collateral Agreement dated as\plain\cf1\f51\fs24\qj of October 11, 2018 and that Amendment No. 3 to Collateral Agreement dated as of December\plain\cf1\f51\fs24\qj 7, 2018, the \u8220?\plain\cf1\f51\fs24\qj Collateral Agreement\plain\sa264\cf1\f51\fs24\qj \u8221?); and\par\pard\plain\cf1\f51\fs24\qj WHEREAS, the parties thereto desire to amend the Collateral Agreement pursuant to Section\plain\sa264\cf1\f51\fs24\qj 8.21 thereof on the terms set forth in this Amendment.\par\pard\plain\fi792\cf1\f51\fs24\qj NOW, THEREFORE, in consideration of the foregoing premises, the mutual covenants\plain\cf1\f51\fs24\qj and agreements hereinafter set forth, and for other good and valuable consideration, the receipt\plain\cf1\f51\fs24\qj and sufficiency of which is hereby acknowledged and accepted, the parties hereto, intending to\plain\sa264\cf1\f51\fs24\qj be legally bound, hereby agree as follows:
\par\pard\plain
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\qj 1.\plain\intbl\cf1\f51\fs24\qj Amendments to Collateral Agreement\plain\intbl\cf1\f51\fs24\qj .\~\cell{
{\trowd\clvertalc\cellx1\cellx9529\trrh320\row}}}\pard\plain\li792\sa264\cf1\f51\fs24\qj \~
\par\pard\plain
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\qj a.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\qj Amendment to Schedule 4.13\plain\intbl\cf1\f51\fs24\qj .\~\~Schedule 4.13 of the Collateral Agreement is\plain\intbl\cf1\f51\fs24\qj hereby amended by deleting it and replacing it in its entirety with the form\plain\intbl\cf1\f51\fs24\qj attached hereto as Exhibit A.\cell{
{\trowd\clvertalc\cellx1440\cellx1800\clvertalc\cellx1802\cellx9529\trrh914\row}}}\pard\plain\li1188\sa264\cf1\f51\fs24\qj \~
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\qj 2.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\qj Miscellaneous\plain\intbl\cf1\f51\fs24\qj .\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9529\trrh320\row}}}\pard\plain\li1188\sa264\cf1\f51\fs24\qj \~
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\qj a.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\qj Ratification of Collateral Agreement\plain\intbl\cf1\f51\fs24\qj .\~\~Except as expressly amended and\plain\intbl\cf1\f51\fs24\qj modified by this Amendment, the Collateral Agreement, including the\plain\intbl\cf1\f51\fs24\qj exhibits and schedules thereto, is and shall remain unchanged and in full\plain\intbl\cf1\f51\fs24\qj force and effect in accordance with its terms.\cell{
{\trowd\clvertalc\cellx1440\cellx1800\clvertalc\cellx1802\cellx9529\trrh1210\row}}}\pard\plain\li1980\sa264\cf1\f51\fs24\qj \~
\par\pard\plain
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\qj b.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\qj Other Miscellaneous Terms\plain\intbl\cf1\f51\fs24\qj .\~\~The provisions of Sections 8.15, 8.16 and 8.20\plain\intbl\cf1\f51\fs24\qj of the Collateral Agreement shall apply\plain\intbl\cf1\f51\fs24\i\qj mutatis mutandis\plain\intbl\cf1\f51\fs24\qj to this Amendment.\cell{
{\trowd\clvertalc\cellx1440\cellx1800\clvertalc\cellx1802\cellx9529\trrh594\row}}}\pard\plain\cf1\f51\fs24\qc [\plain\cf1\f51\fs24\i\qc Signature pages follow\plain\sa264\cf1\f51\fs24\qc ]\par\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\li5148\cf1\f51\fs24\qr \~\par\pard\plain\li5148\fi-5148\cf1\f51\fs24\ql \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\par\pard\plain\cf1\f51\fs24\li1270\ql \~\par\pard\plain\sa264\fi792\cf1\f51\fs24\qj IN WITNESS WHEREOF, the parties hereto have duly executed this Amendment as of\plain\cf1\f51\fs24\qj the date first written above.\par\pard\plain\sa264\fi792\cf1\f51\fs24\qj \~\par\pard\plain\li3960\cf1\f51\fs24\b\qj VIVUS, INC.\par\pard\plain\li3960\cf1\f51\fs24\qj \~\par\pard\plain\li3960\cf1\f51\fs24\qj \~\par\pard\plain\li3960\cf1\f51\fs24\qj By:\plain\li3960\cf1\f51\fs24\qj /s/ Mark Oki\par\pard\plain\li3960\cf1\f51\fs24\qj Name: Mark Oki\par\pard\plain\li3960\cf1\f51\fs24\qj Title: Chief Financial Officer\par\pard\plain\li3960\sa264\cf1\f51\fs24\qj \~\par\pard\plain\cf1\f51\fs20\qc \{Signature Page to Amendment No. 4 to Collateral Agreement\}\par\pard\plain\cf1\f51\fs24\qr \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\par\pard\plain\li3960\cf1\f51\fs24\b\li4870\qj U.S. BANK NATIONAL ASSOCIATION\par\pard\plain\li3960\cf1\f51\fs24\qj as Trustee\par\pard\plain\li3960\cf1\f51\fs24\qj \~\par\pard\plain\li3960\cf1\f51\fs24\qj \~\par\pard\plain\li3960\cf1\f51\fs24\qj By:\plain\li3960\cf1\f51\fs24\qj /s/ Alison D.B. Nadeau\par\pard\plain\li3960\cf1\f51\fs24\qj Name:Alison D.B. Nadeau\par\pard\plain\li3960\cf1\f51\fs24\qj Title:Vice President\par\pard\plain\li3960\cf1\f51\fs24\qj \~\par\pard\plain\li3960\cf1\f51\fs24\qj \~\par\pard\plain\li3960\cf1\f51\fs24\b\qj U.S. BANK NATIONAL ASSOCIATION\par\pard\plain\li3960\cf1\f51\fs24\qj as Collateral Agent\par\pard\plain\li3960\cf1\f51\fs24\qj \~\par\pard\plain\li3960\cf1\f51\fs24\qj \~\par\pard\plain\li3960\cf1\f51\fs24\qj By:\plain\li3960\cf1\f51\fs24\qj /s/ Alison D.B. Nadeau\par\pard\plain\li3960\cf1\f51\fs24\qj Name: Alison D.B. Nadeau\par\pard\plain\li3960\cf1\f51\fs24\qj Title:Vice President\par\pard\plain\cf1\f51\fs20\ql \{Signature Page to Amendment No. 4 to Collateral Agreement\}\par\pard\plain\cf1\f51\fs24\qr \~\par\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par\par\pard\plain\li242\ri242\cf1\f51\fs20\ql \~
\page\par\pard\plain\cf1\f51\fs24\li1270\ql \~\par\pard\plain\cf1\f51\fs24\qr EXHIBIT A\par\pard\plain\cf1\f51\fs24\qc \~\par\pard\plain\cf1\f51\fs24\qc Schedule 4.13\par\pard\plain\cf1\f51\fs24\qc \~\par\pard\plain\cf1\f51\fs24\qc Certain Post-Closing Obligations\par\pard\plain\cf1\f51\fs24\ql \~
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\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql 1.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql The Issuer shall, no later than July 31, 2018, (a) enter into an Account Control\plain\intbl\cf1\f51\fs24\ql Agreement in form and substance satisfactory to the Majority Holders with respect to\plain\intbl\cf1\f51\fs24\ql each of the accounts disclosed in Section 9 of the Issuer\u8217?s Perfection\plain\intbl\cf1\f51\fs24\ql Certificate delivered on or prior to the Effective Date or (b) move any such account\plain\intbl\cf1\f51\fs24\ql to another financial institution approved by the Majority Holders and ensure that such\plain\intbl\cf1\f51\fs24\ql replacement bank account is subject to the \u8220?control\u8221? (as defined in\plain\intbl\cf1\f51\fs24\ql Article 9 of the UCC) of the Collateral Agent pursuant to an Account Control\plain\intbl\cf1\f51\fs24\ql Agreement in form and substance satisfactory to the Majority Holders.\cell{
{\trowd\clvertalc\cellx620\cellx980\clvertalc\cellx981\cellx9529\trrh2399\row}}}
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{\trowd\clvertalc\cellx620\cellx980\clvertalc\cellx981\cellx9529\trrh1805
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql 2.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql To the extent obtainable using commercially reasonable efforts, no later than sixty\plain\intbl\cf1\f51\fs24\ql (60) calendar days following the Effective Date, the Issuer shall execute and deliver\plain\intbl\cf1\f51\fs24\ql bailee agreements to be entered into among the Issuer, the Collateral Agent and each\plain\intbl\cf1\f51\fs24\ql of the following warehouseman, bailees, agents or processors referred to in the\plain\intbl\cf1\f51\fs24\ql Issuer\u8217?s Perfection Certificate delivered on or prior to the Effective Date: (a)\plain\intbl\cf1\f51\fs24\ql Catalent; (b) Cardinal; (c) Sanofi; and (d) Nordmark.\cell{
{\trowd\clvertalc\cellx620\cellx980\clvertalc\cellx981\cellx9529\trrh1805\row}}}
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{\trowd\clvertalc\cellx620\cellx980\clvertalc\cellx981\cellx9529\trrh2399
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql 3.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql The Issuer shall, no later than February 5, 2019, cause Vivus Pharmaceuticals Limited\plain\intbl\cf1\f51\fs24\ql (f/k/a Willow Biopharma Inc.) to enter into (a) an Account Control Agreement with\plain\intbl\cf1\f51\fs24\ql respect to any and all deposit accounts, securities accounts and commodity accounts\plain\intbl\cf1\f51\fs24\ql with the Collateral Agent and the applicable bank, securities intermediary or\plain\intbl\cf1\f51\fs24\ql commodity intermediary with which such account or accounts are held and (b) all\plain\intbl\cf1\f51\fs24\ql other related agreements, documents and instruments, including any pledge agreement\plain\intbl\cf1\f51\fs24\ql from Vivus Pharmaceuticals Limited in favor of the Collateral Agent with respect to\plain\intbl\cf1\f51\fs24\ql any such accounts\cell{
{\trowd\clvertalc\cellx620\cellx980\clvertalc\cellx981\cellx9529\trrh2399\row}}}
\par\pard\plain
{\trowd\clvertalc\cellx620\cellx980\clvertalc\cellx981\cellx9529\trrh2673
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql 4.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs24\ql The Issuer shall, no later than June 5, 2019, dissolve or otherwise terminate, or cause\plain\intbl\cf1\f51\fs24\ql the dissolution or termination of, the following Restricted Subsidiaries of the Issuer,\plain\intbl\cf1\f51\fs24\ql and provide evidence thereof to the Collateral Agent: (a) VIVUS UK LIMITED, a\plain\intbl\cf1\f51\fs24\ql private limited company organized and existing under the laws of the United\plain\intbl\cf1\f51\fs24\ql Kingdom, (b) VIVUS LIMITED, organized and existing under the laws of Bermuda,\plain\intbl\cf1\f51\fs24\ql (c) VIVUS International, L.P., organized and existing under the laws of Bermuda, (d)\plain\intbl\cf1\f51\fs24\ql VIVUS INTERNATIONAL LIMITED, organized and existing under the laws of\plain\intbl\cf1\f51\fs24\ql Ireland and (e) VIVUS REAL ESTATE LLC, a limited liability company organized\plain\intbl\cf1\f51\fs24\ql and existing under the laws of the State of New Jersey.\cell{
{\trowd\clvertalc\cellx620\cellx980\clvertalc\cellx981\cellx9529\trrh2673\row}}}\pard\plain\li3960\cf1\f51\fs24\ql \~\par\pard\plain\cf1\f51\fs24\qr \~\par\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par
\page{\*\bkmkstart doc_1_3}{\*\bkmkend doc_1_3}\par\pard\plain\cf1\f51\fs20\b\qr Exhibit\~31.1\par\pard\plain\cf1\f51\fs20\qr \~\par\pard\plain\cf1\f51\fs20\qc CERTIFICATION\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\ql I, John P. Amos, certify that:\par\pard\plain\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh248
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql 1.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql I have reviewed this quarterly report on Form\~10-Q of VIVUS,\~Inc.;\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh248\row}}}\pard\plain\li792\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql 2.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to\plain\intbl\cf1\f51\fs20\ql state a material fact necessary to make the statements made, in light of the circumstances under which such\plain\intbl\cf1\f51\fs20\ql statements were made, not misleading with respect to the period covered by this report;\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742\row}}}\pard\plain\li792\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql 3.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Based on my knowledge, the financial statements, and other financial information included in this report,\plain\intbl\cf1\f51\fs20\ql fairly present in all material respects the financial condition, results of operations and cash flows of the\plain\intbl\cf1\f51\fs20\ql registrant as of, and for, the periods presented in this report;\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742\row}}}\pard\plain\li792\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh990
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql 4.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql The registrant\u8217?s other certifying officer and I are responsible for establishing and maintaining\plain\intbl\cf1\f51\fs20\ql disclosure controls and procedures (as defined in Exchange Act Rules\~13a-15(e)\~and 15d-15(e)) and\plain\intbl\cf1\f51\fs20\ql internal control over financial reporting (as defined in Exchange Act Rules\~13a-15(f)\~and 15d-15(f)) for the\plain\intbl\cf1\f51\fs20\ql registrant and have:\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh990\row}}}\pard\plain\li792\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql a.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to\plain\intbl\cf1\f51\fs20\ql be designed under our supervision, to ensure that material information relating to the registrant,\plain\intbl\cf1\f51\fs20\ql including its consolidated subsidiaries, is made known to us by others within those entities, particularly\plain\intbl\cf1\f51\fs20\ql during the period in which this report is being prepared;\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql b.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Designed such internal control over financial reporting, or caused such internal control over financial\plain\intbl\cf1\f51\fs20\ql reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability\plain\intbl\cf1\f51\fs20\ql of financial reporting and the preparation of financial statements for external purposes in accordance\plain\intbl\cf1\f51\fs20\ql with generally accepted accounting principles;\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh742
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql c.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Evaluated the effectiveness of the registrant\u8217?s disclosure controls and procedures and presented\plain\intbl\cf1\f51\fs20\ql in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of\plain\intbl\cf1\f51\fs20\ql the end of the period covered by this report based on such evaluation; and\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh742\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql d.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Disclosed in this report any change in the registrant\u8217?s internal control over financial reporting\plain\intbl\cf1\f51\fs20\ql that occurred during the registrant\u8217?s most recent fiscal quarter (the registrant\u8217?s fourth\plain\intbl\cf1\f51\fs20\ql fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to\plain\intbl\cf1\f51\fs20\ql materially affect, the registrant\u8217?s internal control over financial reporting; and\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql 5.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql The registrant\u8217?s other certifying officer and I have disclosed, based on our most recent evaluation of\plain\intbl\cf1\f51\fs20\ql internal control over financial reporting, to the registrant\u8217?s auditors and the audit committee of the\plain\intbl\cf1\f51\fs20\ql registrant\u8217?s board of directors (or persons performing the equivalent functions):\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742\row}}}\pard\plain\li792\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql a.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql All significant deficiencies and material weaknesses in the design or operation of internal\plain\intbl\cf1\f51\fs20\ql control over financial reporting which are reasonably likely to adversely affect the\plain\intbl\cf1\f51\fs20\ql registrant\u8217?s ability to record, process, summarize and report financial information;\plain\intbl\cf1\f51\fs20\ql and\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh495
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql b.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Any fraud, whether or not material, that involves management or other employees who have a\plain\intbl\cf1\f51\fs20\ql significant role in the registrant\u8217?s internal control over financial reporting.\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh495\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql Date: April 30, 2019\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc \~
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{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx809\clvertalb\cellx4976\clvertalb\cellx9688\trrh66
\pard\plain\intbl\cf1\f51\fs24\ql A\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx809\clvertalb\cellx4976\clvertalb\cellx9688\trrh66\row}}}
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx809\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4976\clvertalb\cellx9688\trrh248
\pard\plain\intbl\li154\fi-154\cf1\f51\fs20\ql By:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql /s/ John P. Amos\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx809\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4976\clvertalb\cellx9688\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx809\clbrdrt\brdrs\brdrcf1\clvertalb\cellx4976\clvertalb\cellx9688\trrh264
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql John P. Amos\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx809\clbrdrt\brdrs\brdrcf1\clvertalb\cellx4976\clvertalb\cellx9688\trrh264\row}}}
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx809\clvertalb\cellx4976\clvertalb\cellx9688\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Chief Executive Officer\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx809\clvertalb\cellx4976\clvertalb\cellx9688\trrh248\row}}}\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par
\page{\*\bkmkstart doc_1_4}{\*\bkmkend doc_1_4}\par\pard\plain\cf1\f51\fs20\b\qr Exhibit\~31.2\par\pard\plain\cf1\f51\fs20\qr \~\par\pard\plain\cf1\f51\fs20\qc CERTIFICATION\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\ql I, Mark K. Oki, certify that:\par\pard\plain\cf1\f51\fs20\ql \~
\par\pard\plain
{\trowd\clvertalc\cellx345\cellx9688\trrh248
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql 1. I have reviewed this quarterly report on Form\~10-Q of VIVUS,\~Inc.;\cell{
{\trowd\clvertalc\cellx345\cellx9688\trrh248\row}}}\pard\plain\li792\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql 2.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Based on my knowledge, this report does not contain any untrue statement of a material fact or omit to\plain\intbl\cf1\f51\fs20\ql state a material fact necessary to make the statements made, in light of the circumstances under which such\plain\intbl\cf1\f51\fs20\ql statements were made, not misleading with respect to the period covered by this report;\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742\row}}}\pard\plain\li792\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql 3.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Based on my knowledge, the financial statements, and other financial information included in this report,\plain\intbl\cf1\f51\fs20\ql fairly present in all material respects the financial condition, results of operations and cash flows of the\plain\intbl\cf1\f51\fs20\ql registrant as of, and for, the periods presented in this report;\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742\row}}}\pard\plain\li792\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh990
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql 4.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql The registrant\u8217?s other certifying officer and I are responsible for establishing and maintaining\plain\intbl\cf1\f51\fs20\ql disclosure controls and procedures (as defined in Exchange Act Rules\~13a-15(e)\~and 15d-15(e)) and\plain\intbl\cf1\f51\fs20\ql internal control over financial reporting (as defined in Exchange Act Rules\~13a-15(f)\~and 15d-15(f)) for the\plain\intbl\cf1\f51\fs20\ql registrant and have:\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh990\row}}}\pard\plain\li792\fi-396\cf1\f51\fs20\ql \~
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{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql a.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Designed such disclosure controls and procedures, or caused such disclosure controls and procedures to\plain\intbl\cf1\f51\fs20\ql be designed under our supervision, to ensure that material information relating to the registrant,\plain\intbl\cf1\f51\fs20\ql including its consolidated subsidiaries, is made known to us by others within those entities, particularly\plain\intbl\cf1\f51\fs20\ql during the period in which this report is being prepared;\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql b.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Designed such internal control over financial reporting, or caused such internal control over financial\plain\intbl\cf1\f51\fs20\ql reporting to be designed under our supervision, to provide reasonable assurance regarding the reliability\plain\intbl\cf1\f51\fs20\ql of financial reporting and the preparation of financial statements for external purposes in accordance\plain\intbl\cf1\f51\fs20\ql with generally accepted accounting principles;\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh742
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql c.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Evaluated the effectiveness of the registrant\u8217?s disclosure controls and procedures and presented\plain\intbl\cf1\f51\fs20\ql in this report our conclusions about the effectiveness of the disclosure controls and procedures, as of\plain\intbl\cf1\f51\fs20\ql the end of the period covered by this report based on such evaluation; and\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh742\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql d.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Disclosed in this report any change in the registrant\u8217?s internal control over financial reporting\plain\intbl\cf1\f51\fs20\ql that occurred during the registrant\u8217?s most recent fiscal quarter (the registrant\u8217?s fourth\plain\intbl\cf1\f51\fs20\ql fiscal quarter in the case of an annual report) that has materially affected, or is reasonably likely to\plain\intbl\cf1\f51\fs20\ql materially affect, the registrant\u8217?s internal control over financial reporting; and\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~
\par\pard\plain
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql 5.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql The registrant\u8217?s other certifying officer and I have disclosed, based on our most recent evaluation of\plain\intbl\cf1\f51\fs20\ql internal control over financial reporting, to the registrant\u8217?s auditors and the audit committee of the\plain\intbl\cf1\f51\fs20\ql registrant\u8217?s board of directors (or persons performing the equivalent functions):\cell{
{\trowd\clvertalc\cellx360\cellx720\clvertalc\cellx721\cellx9688\trrh742\row}}}\pard\plain\li792\fi-396\cf1\f51\fs20\ql \~
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql a.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql All significant deficiencies and material weaknesses in the design or operation of internal\plain\intbl\cf1\f51\fs20\ql control over financial reporting which are reasonably likely to adversely affect the\plain\intbl\cf1\f51\fs20\ql registrant\u8217?s ability to record, process, summarize and report financial information;\plain\intbl\cf1\f51\fs20\ql and\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh990\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~
\par\pard\plain
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh495
\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql b.\cell\pard\plain\intbl\f0\fs16\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Any fraud, whether or not material, that involves management or other employees who have a\plain\intbl\cf1\f51\fs20\ql significant role in the registrant\u8217?s internal control over financial reporting.\cell{
{\trowd\clvertalc\cellx720\cellx1080\clvertalc\cellx1081\cellx9688\trrh495\row}}}\pard\plain\li1188\fi-396\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql Date: April 30, 2019\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql \~
\par\pard\plain
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx709\clvertalb\cellx4968\clvertalb\cellx9688\trrh66
\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx709\clvertalb\cellx4968\clvertalb\cellx9688\trrh66\row}}}
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx709\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4968\clvertalb\cellx9688\trrh248
\pard\plain\intbl\li154\fi-154\cf1\f51\fs20\ql By:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql /s/ Mark K. Oki\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx709\clbrdrb\brdrs\brdrcf1\clvertalb\cellx4968\clvertalb\cellx9688\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx709\clbrdrt\brdrs\brdrcf1\clvertalb\cellx4968\clvertalb\cellx9688\trrh264
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Mark K. Oki\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx709\clbrdrt\brdrs\brdrcf1\clvertalb\cellx4968\clvertalb\cellx9688\trrh264\row}}}
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx709\clvertalb\cellx9688\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Senior Vice President, Chief Financial Officer and Chief Accounting Officer\cell{
{\trowd\trqc\clvertalb\cellx519\clvertalb\cellx709\clvertalb\cellx9688\trrh248\row}}}\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par
\page{\*\bkmkstart doc_1_5}{\*\bkmkend doc_1_5}\par\pard\plain\cf1\f51\fs20\b\qr Exhibit\~32\par\pard\plain\cf1\f51\fs20\qr \~\par\pard\plain\cf1\f51\fs20\b\qc CERTIFICATION OF CHIEF EXECUTIVE OFFICER AND CHIEF FINANCIAL OFFICER\par\pard\plain\cf1\f51\fs20\b\qc PURSUANT TO\par\pard\plain\cf1\f51\fs20\b\qc 18 U.S.C. SECTION\~1350,\par\pard\plain\cf1\f51\fs20\b\qc AS ADOPTED PURSUANT TO\par\pard\plain\cf1\f51\fs20\b\qc SECTION\~906 OF THE SARBANES-OXLEY ACT OF 2002\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\fi792\cf1\f51\fs20\ql I, John P. Amos, Chief Executive Officer of VIVUS,\~Inc., certify, pursuant to 18 U.S.C. Section\~1350, as\plain\cf1\f51\fs20\ql adopted pursuant to Section\~906 of the Sarbanes-Oxley Act of 2002, that the Quarterly Report of VIVUS,\~Inc. on\plain\cf1\f51\fs20\ql Form\~10-Q for the period ended March 31, 2019, fully complies with the requirements of Section\~13(a)\~or 15(d)\~of\plain\cf1\f51\fs20\ql the Securities Exchange Act of 1934 and that information contained in such Quarterly Report on Form\~10-Q fairly\plain\cf1\f51\fs20\ql presents, in all material respects, the financial condition and results of operations of VIVUS,\~Inc. This written\plain\cf1\f51\fs20\ql statement is being furnished to the Securities and Exchange Commission as an exhibit to such Quarterly Report on\plain\cf1\f51\fs20\ql Form\~10-Q. A signed original of this statement has been provided to VIVUS,\~Inc. and will be retained by\plain\cf1\f51\fs20\ql VIVUS,\~Inc. and furnished to the Securities and Exchange Commission or its staff upon request.\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql Date: April 30, 2019\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc \~
\par\pard\plain
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\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\cellx709\clvertalb\cellx5067\clvertalb\cellx9688\trrh66\row}}}
{\trowd\trqc\clvertalb\cellx519\cellx709\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5067\clvertalb\cellx9688\trrh248
\pard\plain\intbl\li154\fi-154\cf1\f51\fs20\ql By:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql /s/ John P. Amos\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\cellx709\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5067\clvertalb\cellx9688\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx519\cellx709\clbrdrt\brdrs\brdrcf1\clvertalb\cellx5067\clvertalb\cellx9688\trrh264
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql John P. Amos\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\cellx709\clbrdrt\brdrs\brdrcf1\clvertalb\cellx5067\clvertalb\cellx9688\trrh264\row}}}
{\trowd\trqc\clvertalb\cellx519\cellx709\clvertalb\cellx5067\clvertalb\cellx9688\trrh248
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Chief Executive Officer\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\cellx709\clvertalb\cellx5067\clvertalb\cellx9688\trrh248\row}}}\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\fi792\cf1\f51\fs20\ql I, Mark K. Oki,\~Senior Vice President, Chief Financial Officer and Chief Accounting Officer of VIVUS,\plain\cf1\f51\fs20\ql Inc., certify, pursuant to 18 U.S.C. Section\~1350, as adopted pursuant to Section\~906 of the Sarbanes-Oxley Act of\plain\cf1\f51\fs20\ql 2002, that the Quarterly Report of VIVUS,\~Inc. on Form\~10-Q for the period ended March 31, 2019, fully complies\plain\cf1\f51\fs20\ql with the requirements of Section\~13(a)\~or 15(d)\~of the Securities Exchange Act of 1934 and that information\plain\cf1\f51\fs20\ql contained in such Quarterly Report on Form\~10-Q fairly presents, in all material respects, the financial condition\plain\cf1\f51\fs20\ql and results of operations of VIVUS,\~Inc. This written statement is being furnished to the Securities and Exchange\plain\cf1\f51\fs20\ql Commission as an exhibit to such Quarterly Report on Form\~10-Q. A signed original of this statement has been\plain\cf1\f51\fs20\ql provided to VIVUS,\~Inc. and will be retained by VIVUS,\~Inc. and furnished to the Securities and Exchange\plain\cf1\f51\fs20\ql Commission or its staff upon request.\par\pard\plain\cf1\f51\fs20\ql \~\par\pard\plain\cf1\f51\fs20\ql Date: April 30, 2019\par\pard\plain\cf1\f51\fs20\qc \~\par\pard\plain\cf1\f51\fs20\qc \~
\par\pard\plain
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\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell\pard\plain\intbl\cf1\f51\fs2\ql \~\cell{
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{\trowd\trqc\clvertalb\cellx519\cellx709\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5069\clvertalb\cellx9688\trrh248
\pard\plain\intbl\li154\fi-154\cf1\f51\fs20\ql By:\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\~\cell\pard\plain\intbl\cf1\f51\fs20\ql /s/ Mark K. Oki\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\cellx709\clbrdrb\brdrs\brdrcf1\clvertalb\cellx5069\clvertalb\cellx9688\trrh248\row}}}
{\trowd\trqc\clvertalb\cellx519\cellx709\clbrdrt\brdrs\brdrcf1\clvertalb\cellx5069\clvertalb\cellx9688\trrh264
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Mark K. Oki\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\cellx709\clbrdrt\brdrs\brdrcf1\clvertalb\cellx5069\clvertalb\cellx9688\trrh264\row}}}
{\trowd\trqc\clvertalb\cellx519\cellx709\clvertalb\cellx5069\clvertalb\cellx9688\trrh495
\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell\pard\plain\intbl\cf1\f51\fs20\ql Senior Vice President, Chief Financial Officer and\plain\intbl\cf1\f51\fs20\ql Chief Accounting Officer\cell\pard\plain\intbl\cf1\f51\fs20\ql \~\cell{
{\trowd\trqc\clvertalb\cellx519\cellx709\clvertalb\cellx5069\clvertalb\cellx9688\trrh495\row}}}\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\cf1\f51\fs24\ql \~\par\pard\plain\f0\fs4\par\pard\plain\f0\fs2\brdrt\brdrs\brdrw15\brdrcf2\brdrsp0\par\pard\plain\f0\fs4\par
\page}